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MikeB70
Level 2

Assign PayPal fees to Cost of Sales

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

Solved
Best answer October 07, 2021

Accepted Solutions
EmmaM
QuickBooks Team

Assign PayPal fees to Cost of Sales

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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2 REPLIES 2
EmmaM
QuickBooks Team

Assign PayPal fees to Cost of Sales

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
Level 2

Assign PayPal fees to Cost of Sales

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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