How do you record a bank fee when customer pays you via wire or some other payment method. I have seen SA 23089, but that doesn't close the invoice, it leave the invoice open even if we select the customer name on the JE.

you have to apply the JE to the invoice

We temporarily post the Customer Payment to Undeposited Funds (for the full amount) so that it will show up on Deposits transaction. We enter the Bank Fees under the Cash Back sublist of the Deposit transaction.

We use one of two approaches, neither ideal 1. receive the full amount into a bank clearing account (DR clearing, CR AR). Enter a payment for the bank fees into the clearing account (CR clearing DR bank fees). Transfer the residual amount from the clearing account into the "real" bank account (CR clearing, DR real bank). Result: everything is right, but it's a bit transaction heavy 1. Receipt the actual amount received into the customer's account, and use the Discount function on payment application. Direct discounts to a bank fees account. Result: just one transaction, but the customer statement doesn't reflect what they've paid, and this doesn't work if you have "real" settlement discounts as you need to direct them somewhere else in the GL.

Thanks Jon, will run by accounting team and see how they want to go about it.