Auto tax deduction in bank transactions

i wanted to know how to handle this situation

when costumer pay through credit or debit card the bank deduct 2% tax on it when i apply tax code of -2%
like i want to apply tax to 5100 it shows 5100 includes -2% tax on ledger its shows 5202 any solution for this
i want it to show 5100 on ledger and all the tax in negative amount

You should not be using a tax code at all. The 2% in this case is a bank fee. If you enter it with a tax code, that will affect how much the program shows you owe the government in the Tax payable account.

The bank fee is also a payment to a third party, which is financially different from your receipt from your customer. Entry of bank fees has been discussed many times on the forum. Please search before you post new topics.

This is how I’ve been handling customers that pay me via PayPal. For every transaction, PayPal charges a fee.

In the examples below, “PayPal fees” is an Expense in my Chart of Accounts.

Entering the payment:
30 pm

Which ends up looking like this:

And when viewing the transaction under the bank account (“PayPal balance”), it appears like this:

Note that:

  • The invoice gets marked as Paid in Full because Accounts receivable for that customer received the outstanding amount of money.
  • My PayPal fees expense account stores all of the fees charged to me.

Now … I’m no accounting expert. So perhaps @Tut could confirm whether or not what I’ve listed above matches his explanation? I wouldn’t want to give you wrong advice 666yasir.

Oh, a quick update:
From my understanding, you could do this as two separate transactions as well (one for the payment, another for the fees you were charged). That way, the receipt you send to the customer doesn’t have your fees on it … and your bank account still balances.

However, since I usually just send an email confirmation and don’t use the PDF Receipt functionality Manager offers, I just put it into the same one.

That’s what the several other topics already on the forum say, too. This can also be implemented through bank rules if you import your PayPal statement. The program will recognize the fee. There is a topic about that, too.

True, and actually more correct. With the first method, the customer is actually shown as having paid the invoice in full and simultaneously having charged you the PayPal fee. But the customer didn’t really do that; PayPal charged you the fee. But that’s an extra transaction to enter something that happened automatically and is adequately documented in your PayPal statement on a transaction-by-transaction basis. So, in my opinion, it isn’t necessary. If you were assessed one fee at the end of a month for all transactions, it would be a different case. Then, I would enter the fee as a separate transaction.

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