Standard FM Clearing QBO Setup - Bank Feed Connected

The standard setup that we do for new accounts involves using a new FM Clearing account. You may request not to use this account if you'd like, but you have to specifically let us know if not. ** Please do NOT delete the “FM Clearing” account without letting us know beforehand, so we can re-map the transaction-flow if you don’t want to use FM Clearing. **

A typical credit card transaction will look like this, where the Payment flows into the new “FM Clearing” account, a placeholder account till the Deposit amounts transfer funds into your primary checking account automatically:

And if you do a P&L report in QBO, it will look something like this:

We added the “FM Clearing” account and an automated bank rule (the “Per Deposit FM” rule) to record each bank deposit as a Transfer FROM: FM Clearing and TO: Primary Checking when the bank deposit hits your Primary Checking account. The Balance in that new “FM Clearing” account should ONLY be the amount of “not yet deposited” transactions for credit card eCheck/ACH transactions at any given time.

Note that when customers pay the credit card surcharge, you receive the surcharge as “Credit Card Surcharge Income.” These surcharges will appear as Sales Receipts in the “FM Clearing” account and you will receive the full deposit amount in your bank account. Unlike Intuit-Merchant and other providers, our variable fees only get taken out ONCE per month, on/around the 2^nd of the calendar month for the prior month. This saves you a lot of entries in QBO and makes bank reconciliation much easier. There will be two withdrawals: one for credit cards (“MERCH BANKCARD BILLNG”) and one for eCheck/ACH (“Vericheck INC”). 

So, you will receive CC surcharge Income throughout the month with each transaction, and CC fees will be pulled once per month for the total accumulated surcharge income. We created an automated Bank Rule to handle these monthly fee pulls for credit card and eCheck (which will come from two different Vendor Names but into one Expense Line-item).