[janiml]

Where would you post a finance charge? Would you post it the expense account which you are using to pay the bill? For instance, you are paying a food bill late and they assess a fee, would you charge the fee to food? Or to Bank Fees? Or something else?

[pready]

It is an Expense.

Post it to the appropriate Expense Account. If none you can post this to a Misc Expense Account.

You will need to look at the Chart of Accounts for your company to figure out what Expense to Debit. The Credit will be to Cash.

[janiml]

Sorry, that does not help me. Would you debit the food expense in my example or bank fees expense? I know it is an expense. My question is what do you think is appropriate?

[pready]

If it is a Bank Service charge then it is posted as Follows:

Debit Bank Service Charges Expense (or Misc Expense)
Credit Cash