I need a bit of a steer in the right direction. I sell quite a lot of stuff on eBay and I'm adding a paypal account which shows income received from a sale and then the fee as a separate line. This is fine I can add all the fees to a "Paypal Fees" expense account in Quickbooks.
Trouble is I need to use a CSV file to get older data and in the CSV file it's a pain to separate the fees into separate rows. My question is does it matter if I just import the net income field (sale minus the fee) on the CSV file and don't include the Paypal fee as an expense? Or do I need to show the full gross sale amount as income and then paypal fees as an expense. From an accounting perspective does it matter, considering the net income will be the same?
I hope that makes sense
Thank you for dropping by here in the Community. I'd be glad to assist you about the PayPal fees.
For your first question, we recommend to include the PayPal fees when importing them via CSV. This way, when you make a deposit to your bank account within QBO, you can enter the fees in a negative amount to show the net income.
That said, you can import transactions showing the gross amount and add up the fees as an expense. I also suggest seeking expert advise from an accountant with regards to adding the PayPal transactions without the fees.
They'll be able to provide additional guidance with recording fees in our system. To know more about how you can match and categorise bank transactions, I recommend checking out this article:
Let me know if you have further questions or clarifications in recording fees. The Community is always up to lend a hand.