Accounting for Bank or Wire Fees

Introduction

Banks may charge fees for different reasons. You will need to account for those in your program so that you can reconcile for that month. 
 

Bank/Wire Fees in Operating Bank

1. Click on the Accounting Tab

2. From the bank tab, select the operating bank and click  Details, or simply double-click the bank account

3. From the Transactions tab, click  Add then select Payment. This will add a withdrawal transaction.

4. Complete the Add Transaction form.

  • Select the date the bank posted the fee and the amount of the fee.
  • Select Adjustment-Out as the type, and select Error-Bank as the Method.
  • Enter the Bank Name in the “From” field.
  • Enter an appropriate note for the Memo2 line (Memo 2 is internal).
  • Finally, select the correct chart of account. We have provided 6075: Bank & Merchant Service Charges.
  • Click Save.

Bank/Wire Fees in Trust or Escrow Bank

Since Trust transactions must always be associated with a matter, you will need to use an administrative matter, with a personal buffer in trust, where you can account for such fees. Not sure how to do this properly? Learn more about Personal Buffers here. 
 

1. From the Matters Tab, select your administrative matter, and click Trust Transaction Withdrawal on the right

2. Complete the “Matter’s Trust Withdrawal” Screen. 

  • Select the date the bank posted the fee and the amount of the fee.
  • Select Adjustment-Out as the type, and select Error-Bank as the Method.
  • Enter the Bank Name in the “From” field.
  • Enter an appropriate note for the Memo2 line (Memo 2 is internal).
  • Click Save. 

If you do not have enough money in the account to cover the fee it will produce the following error:

 

Updated on September 6, 2018

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