If you firm receive client’s payment deposited into your general bank with a deduction of bank charge, and your firm would like to show client’s bill is fully paid, and your firm want to absorb the bank charge expense to charge to Bank Charge/interest GL account. There are 2 options to post the bill payment and bank charge depends on how bank posted the receipt on your bank statement.

1. If you bank statement post bank charge separately from your client’s payment, for example, client paid total of $220.50, you bank statement has a deposit of $220.50, and a debit of bank fee $2.50
1.1 Enter bill payment as in below for amount of $220.50

After bill payment, client’s bill is fully paid as in below:

1.2 Write a general cheque as in below for bank charge expense

1.3 Those 2 posting will match to your bank statement:

2. If your bank statement post total amount after deduct bank charge as one deposit amount, for example, your client paid $220.50, after deduct bank charge of $2.50, the bank statement has one amount of deposit $218 ($220.50 - $2.50)
2.1 Enter bill payment for actual deposit amount $218 as in below.

After this payment, client’s bill show as partially paid.

2.2 Write general cheque as in below for Credit Memo to be applied as a bill payment:

2.3 Enter bill payment for credit memo amount $2.50 in order to show client’s bill is fully paid.

After this credit payment, bill show as paid in screenshot below.

2.4 Bank rec will show actual deposit of $218, and a Credit Memo cheque and deposit which zero out each other.