How to handle deposits from Paypal and change Invoices to Deposited??

Hi KarenSlaviero, 

Thanks for joining us here on the Community. :waving_hand:

If you have recorded receiving the invoice payment to the 'Undeposited funds' account on the invoice, you can record depositing this payment by creating a bank deposit (+ New > Bank deposit). 

When you create a bank deposit, you'll see all of the transactions which you've allocated to the undeposited funds account under 'Select the payments included in this deposit'.

Tick the check-box to the left of the transaction which applies to this payment (you can select multiple here if you received a bulk payment) and check the account and date fields are correct. 

As the invoice is for the full amount, you'll then need to deduct the fees by scrolling to 'Add funds to this deposit' - here, select the account you use to track your PayPal fees under 'Account', and enter the fee amount as a minus figure, with no VAT. 

You'll then see the total deposit 'Amount' showing as the total amount received, and once saved you'll be able to match this to your payment in the bank feed, and the invoice will show as deposited.

As you've already recorded the fee separately, I'd advise deleting this and entering the fee as outlined above.

Please get back to us below if you have any Q's!

Hi Georgia,

When I look at Transactions > Banking > For Review: I see the the amount recieved as the number I transferred from Paypal minus their fees - the money is in my account already. 

What do I record that as?  Add with Supplier = Paypal & category = my Bank account (cash in hand and at bank)?  Find match (and match up against payments and just resolve differences, as the fees have already been expensed)?  Or Record Transfer straight into my Bank Account?

Then what do I do with all the Invoices to make  the Deposited?

Sorry - I'm just really confused - I'm just a physio! :(

Thanks, Karen

Hi Karen, 

Thanks for getting back to me. As you've already created invoices for the sales, it would be incorrect to 'add' the transaction directly from the For-Review screen, as this would duplicate the income. Instead, you can 'match' the payment in the banking to the payment on the invoice, to link the two together. 

Did you record the payment on the invoices to the 'Undeposited Funds' account? You can check the payment account selected by opening the invoice and clicking on '1 payment' made in the top right-corner, and then click on the date which appears.

You may find this article here helpful - beginning from step 4, you would choose undeposited funds as the payment account on the invoice payment, and then create a bank deposit as detailed. :D