Recording overseas/local bank charges on paid invoices


What is the best way to record overseas and local bank charges when an invoice is paid?

Invoice total amount 5000 Eur
International bank charges: 300
Local bank charges: 200
Total fund credited: 4500 Eur

I could use negative signs for those expenses and record them under "bank charges - expenses account - but in this was the total amount of bank charges in the summary would be lowered. Furthermore I cannot assign these expenses to a specific bank.
Should i create a new transaction for Overseas and local charges?

I tried to look for a Manager guide or link but didn’t find anything.


You need to create two expenses accounts - “Local Bank Charges” and “International Bank Charges”.

If you want to keep track of bank charges by bank, then either add a description to each line of bank charge, use tracking codes or setup an expense account for each bank eg Bank Charges Bank A, Bank Charges Bank B, etc althought that seems a bit of overkill.

Then on the Receive Money transaction credit the Account Receivable/Customer/Invoice with the 5000 and enter -300 for International Bank Charges, -200 for Local Bank charges and hey presto! done

Thanks Joe!