Double counting - WIX E-commerce, Stripe and PayPal

ymcgarry1 · ‎July 05, 2021

Hi,

I have WIX and use Stripe and PayPal for payments. I was advised on another website to set up Stripe and PayPal as accounts and to set it up so that e-commerce sales (WIX) payments go to undeposited account first and from there to Stripe or PayPal account as appropriate. I then charge the relevant Stripe/PayPal fee to that account and in theory the net amount is then transferred to the bank.

I have my bank connected and I have been categorising my transactions, however, I just realised that I have been adding them all as deposits so I think that I'm double counting VAT and money in. I then explored whether I could match them but its bringing up payments and the amounts don't match because they are the gross amount and the net amount (less the Stripe/PayPal fee) is what I need to match.

Can anyone advise? It feels like this is way too complicated now.

Thanks

EmmaM · ‎July 16, 2021

Thanks for updating us about the payment receiving process in your company, @Garry.

Joining the thread to share some insights to resolve the receiving and matching problem in your account.

You can exclude the deposit if it is a duplicate of another bank transaction. Otherwise, if it needs to be included in the reconciliation, you can simply match the bank entry with the net payment in QuickBooks.

To do that, receive the payment with the fees in the Undeposited Funds account.

On the invoice, click the Receive Payment button.
Select the correct invoice on the Receive Payment screen.
In the Deposit to field, choose Undeposited Funds.
Click Save and close. (See screenshot attached)

Step 3: Enter a Bank Deposit for the fee to relieve the balance from Undeposited Funds account to bank account. (See screenshot)

Click the QuickBooks Plus (+) icon.
Select Bank Deposit.
Mark the invoice payment you received previously from the Select the payments included in this deposit section.
Expand the Add funds to this deposit section to add a new line item.
In the Received From column, enter the vendor who charged the fees.
In the Account column, add an expense account for the fee.
In the Amount field, enter a negative fee amount.
Make sure the deposit matches the net bank deposit amount.
Click Save and close.

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 categorise your bank transactions. Have a good one!

View solution in original post

MadelynC · ‎July 06, 2021

I’ll help you with these transactions, Garry.

I appreciate you for reaching out to the Community for assistance. I’m glad to share some information with you to ensure it won’t be doubled in VAT and income.

Since you mentioned that they’re all added as deposits, you can create a bank deposit in QuickBooks Online (QBO). This way, you can match them to your downloaded bank transactions.

Here’s how:

Select + New.
Choose Bank Deposit.
From the Account ▼ dropdown, choose the account you want to put the money into.
Make sure all details match in your deposit slip.
Click Save and close or Save and new.

Check out this guide to learn more about managing deposits: Record and make bank deposits in QBO.

In addition, you’ll want to exclude Stripe and PayPal entries if they’re also connected to QuickBooks. This prevents double accounting and keeps your books accurate.

You can run reports to ensure everything is good. It helps you track sales and tell you about different aspects of your business.

Don’t hesitate to let me know if you have other concerns or questions about managing your transactions. I’ll be here! Have a great day and always take care!

Fiat Lux - ASIA · ‎July 06, 2021

@ymcgarry1

First of all, don't connect Wix and QBO. You should only connect Wix and Stripe/PayPal. The utilize the trial version for this app to learn how it reconciles your PayPal/Stripe transactions into your QBO account.

https://synder.grsm.io/quickbooks

ymcgarry1 · ‎July 06, 2021

Hi,

Thanks for the reply but I cannot match transactions as the amount paid by Stripe and PayPal is less the fee they charge for eg

Sale £100 - Payment Received through WIX (shows as paid)

£100 goes to Stripe account.

Fee of £5 expense charged against Stripe account.

Net amount received is £95 (in Stripe account)

This all works fine but it is when I go to the bank (which is connected) and it asks me to review transactions, I have been selecting deposit but this means its double counting the amount and the VAT. I've tried matching but I don't know how to match it as the amount that has been received into the bank from Stripe is £95 but the payment was for £100.

Hope that helps illustrate the issue.

Thanks,

Yvonne.

Ashleigh1 · ‎July 06, 2021

Hello ymcgarry1,

Welcome to the Community page,

So you can either do an invoice for a 100 and when the payment comes into the bank then you would need to resolve the difference and minus of the amount an put it to a strip fees account. Or You can receive the payment and then put the payment to undeposited funds and then add to the deposit by minusing off the strip fees and then match at the bank.

ymcgarry1 · ‎July 16, 2021

Hi,

thanks for the reply but I don't think this solves the issue as I'm currently doing both of those processes which is the problem - its coming in through WIX as a paid invoice and then its also coming in through the bank as a deposit (Stripe payment). I need to know how to remove one of these processes so that I'm not double counting.

I've tried matching the bank, but because the invoice shows as already paid through WIX (ie closed), it does not then appear in the list of transactions in QB because it only seems to show open invoices.

Would it make sense for me to record the payment against a WIX invoice as a sales receipt rather than a payment (is a sales receipt considered open?) so that then the only payment would be when the Stripe deposit is recorded. I would also then be able to match the transaction from the bank as it would appear on the open invoices list...? Or should I just exclude the bank deposits?