Assign PayPal fees to Cost of Sales

MikeB70 · ‎October 07, 2021

So Inutit finally seem to have resolved the issue with customer payments via PayPal being resolved correctly in the Banking screen. However, I want to have PayPal fees categorised as a Cost of Sale, as that's essentially what it is - no sale = no PayPal fee. The problem is, that it appears that in the PayPal App settings, QuickBooks only allows you to assign an Expense account to Paypal fees; has anyone got a better solution to this than having to create a journal entry every month to move the fees to the correct account?

Thanks

EmmaM · ‎October 07, 2021

Hello Mike, Most users categorise the fee as a business expense. Yes, you could move them by journal entry or remove the app and manually enter the transaction. We do welcome other QB user's comments on this thread.

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EmmaM · ‎October 07, 2021

Hello Mike, Most users categorise the fee as a business expense. Yes, you could move them by journal entry or remove the app and manually enter the transaction. We do welcome other QB user's comments on this thread.

MikeB70 · ‎October 07, 2021

Thanks for the reply.

Most of the people I speak to categorise merchant fees as cost of sales, because the charge can be directly linked to a sale. It's also strange because we also use GoCardless to take customer payments and the settings for that allows you to choose a cost of sales account for the fees but you can't do the same with PayPal.

This should really be added as an option, but I suppose for now we'll need to remember to create journals each month.

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Assign PayPal fees to Cost of Sales