Should I add expenses to individual orders?

Introduction

By adding fees to individual orders, it can be easier to reconcile. We recommend adding expenses in bulk when you match deposits. Adding expenses to orders will incorrectly record sales tax liability, therefore, you cannot use QB to track sales tax payable in some tax jurisdictions. Talk to your CPA prior to adding expenses to individual orders.

How do I add fees per order?

Here are the steps:

  1. On the Connex configure page, click the transaction tab.
  2. Scroll down to advanced fee settings. If the section is missing, click the advanced tab.
  3. Enter the item in Xero, the percent and the cents to add on top of the fees. In this example, we will add 2.9% of the order plus thirty cents: fees.png

How do I change the fee percent, based on the payment method?

Under turn on fees, add a default percent as a catch-all. In that example, all orders except the ones with the rule will be 2.5%. To change the percent, you must add a rule:

  1. In Connex, hover over the gear and click rules engine.
  2. Click add new rule.
  3. For each payment method, add a rule like this one: 
  4. Out of box, Connex will use a single item for fees. The field is under advanced fee settings. You can use a different item name for different fee types. In this example, we will use merchant fees for all fees except PayPal:
    fee_item_name.png

How do I change the merchant percent, based on the billing address country?

The rule is the same as the payment method, except the field is order billing address country. Replace map to with the two letter abbreviation of the country.

 

What happens if I enter fees per order?

Here is an order from Xero with credit card fees. The fees credit the Cost of Goods Sold account:

 

The profit and loss looks fine:

This is a sales tax liability report. The gross sales should say $100 instead of $97.10:

You must report your gross sales, taxable and non taxable sales to the state & municipal taxing agencies using another method.

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