I've been on chat for the last 50 minutes trying to get an answer to what must be a really common query for QB newbies. Why does the agent need to spend soo long finding out how I deal with paypal fees! Do the support guys on chat really know their stuff?
Feeling very frustrated.
Hello there, RFBSDot.
This isn’t the kind of service we want you to have. Thank you for sharing your thoughts. I'm here to let you know that your opinion and feedback are greatly appreciated.
I love to help you with your issue about QuickBooks Online (QBO). For me to provide you with the resolution, may I know what specific assistance you need about PayPal fees? I can answer some general questions or concerns you may have about QBO. Simply click the Reply button below, and I’ll do everything in my power to assist.
I’m always around whenever you need help with your QBO account. Keeping you in working order is my top priority. Have a great day.
I was trying to find out how to account for Paypal fees.
So for example, I've got an invoice raised for £15 and I get paid via paypal.
Paypal takes 74p in fees.
I need to mark the invoice as paid but also send the fees to paypal.
How do I account for this if my bank accounts are not linked.
Good day, @RFBSDot,
Thanks for coming back to us with the detailed information of what you want to do in QuickBooks.
When you want to record invoices that are charged with Paypal fees, you just create the invoice like you normally do. Then deposit it in the Undeposited Funds account so we can deduct the fees.
Enter a Bank Deposit for the fee to relieve the balance from Undeposited Funds account to bank account. (See screenshot)
After depositing the funds in your bank, you should be able to match it to the transaction in the Banking page. See this link to learn more about matching bank transactions: Categorise and match online bank transactions in QuickBooks Online
If you need anything else, please let me know in the comment below. I'll be right here to help with your sales transactions. Have a good one!
Ok, so I have a large number of relatively small transactions to process and that seems a bit onerous to deal with the fees for each transaction individually,
Would the following work?
Recive the income in full for each invoice and deposit to a Paypal accout (not linked to QB),
Then when I transfer the fees actually received from the Paypal account to my current account (I do this in batches every couple of weeks or so, could I send the fees out of the Paypal account as an expense? Doing those two things would then set the Paypal balance back to zero, which is what happens in practice.
Yes, this method would work, after receiving the full payment to the PayPal account you can create a separate expense transaction to account for the fees in bulk (via + New > Expense, selecting for example a 'PayPal fees' expense account under 'Category' on the 'Category details' line), then transfer the income you do receive from the sales to your bank from the PayPal account (+ New > Transfer). 🙂