Hey all - we currently have wire fees, bank fees, and stripe fees after a customer pays where the payment comes in net of fee, and creates a difference on the invoice and we are creating credit memo records for this difference to close out the invoice. Is there a better way to do this? How are people ingesting fees is it somewhere on the payment record?

Generally I recommend accepting payment at full invoice value and recording to undeposited funds. And then when the bank activity clears - you recognize the amount via the "cash back" function of the make deposit transaction into the appropriate account.

This doesn't provide as much granularity (which for us is okay but for some may not be) but we pull the fees from the processor reporting and record a manual journal entry to hit CC expense / reduce cash.

@Kathryn Klein How do you get your invoices to close out? Would there be a difference or do you apply the JE to the invoice?

For our ecommerce channel we import customer deposit records equal to what the customer paid. When we invoice the sale the customer deposit automatically applies relieving the total balance due. For wholesale we are pretty fortunate to rarely face this issue but when we are charged foreign processing fees that hit before the deposit we would post the full amount of the invoice and record a JE at the same time (thankfully this is a rare occurrence so minimal JEs 🙂 )

Thank you both for the help. I was able to map the discount field within the payment record to an expense account. This allows us to record the payment net, which is how we ingest from the bank then gross up the payment for the fee and close out the invoice.