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how to enter PayPal fees in correct category

(using QB Desktop Premier for Nonprofits 2018)

Just recently had help to correctly enter PayPal donations for our nonprofit. I corrected something I was doing wrong - I was directing the donation to Undeposited Funds before Make Deposit to PP account. So now I have used Donations (Sales Receipt) and then Donor's name and Deposit drop-down directly to PayPal using the full amount of the donation ($20.00). But now I'm not sure how to enter the PP fee so that the amount in the total of my PP account will reconcile correctly.

 

But now I just viewed a video stating if I would first send the PP donation to Undeposited Funds, then when I made the Deposit to the PP account, I would be able to show the full deposit and on the  next line, I could record the PP fee as a negative amount so the deposit would show up as the actual amount we received.

 

So which is the best way to record PP fees?

Thanks...

Solved
Best answer 02-26-2019

Accepted Solutions
Moderator

Re: how to enter PayPal fees in correct category

Hello Ann,

 

You can follow the initial process your doing (directing the donation to Undeposited Funds). We just need to tweak the steps a little bit.

 

You can add the PayPal fee when you create the deposit instead of adding it on the donation. Here's how to do it:

  1. Create the donation with the full amount ($20). Make sure you select Undeposited Funds in the DEPOSIT TO field.
  2. Click Banking at the top menu and select Make Deposits.
  3. In the Payments to Deposit screen, select the donation and click OK.
  4. In the Make Deposits screen, add the PayPal fee account in the FROM ACCOUNT column.
  5. Enter the amount as negative.
  6. Click Save & Close.

I'd also recommend seeking professional advice from your accountant. They know what's best for you and your books.

 

You can always reach out to us if you need anything elseCapture.JPG Capture 1.JPG

Moderator

Re: how to enter PayPal fees in correct category

Thanks for getting back to me, Ann.

 

Again, the first method would be more appropriate because we'll be able to associate the PayPal fee to the donation. This will also credit the donor with the full donation amount ($20).


We'll need to change a few steps in this method. You can follow the steps I've provided on my earlier reply.

 

Also, I'd recommend consulting your accountant about this. They know what method suits your business.

 

Fill me in if you need anything else.

3 Comments
Moderator

Re: how to enter PayPal fees in correct category

Hello Ann,

 

You can follow the initial process your doing (directing the donation to Undeposited Funds). We just need to tweak the steps a little bit.

 

You can add the PayPal fee when you create the deposit instead of adding it on the donation. Here's how to do it:

  1. Create the donation with the full amount ($20). Make sure you select Undeposited Funds in the DEPOSIT TO field.
  2. Click Banking at the top menu and select Make Deposits.
  3. In the Payments to Deposit screen, select the donation and click OK.
  4. In the Make Deposits screen, add the PayPal fee account in the FROM ACCOUNT column.
  5. Enter the amount as negative.
  6. Click Save & Close.

I'd also recommend seeking professional advice from your accountant. They know what's best for you and your books.

 

You can always reach out to us if you need anything elseCapture.JPG Capture 1.JPG

Super Explorer *

Re: how to enter PayPal fees in correct category

I described two methods in my question:

1) Enter Donation (Sales Receipt) directed toward Undeposited Funds showing $20.00 donation on first line and on 2nd line list the PP fee of negative amount ($0.74). However when I used Make Deposit the total donation amount only showed the donor credited with $19.26 instead of the full $20.00... so i was told instead i should:

2) Enter Donation directly to PP (from Deposit drop-down) so donor is credited the full $20.00 but I don't understand how to do the PP fee.

Attachment shows the Donations posted at full $20.00 amount.

Moderator

Re: how to enter PayPal fees in correct category

Thanks for getting back to me, Ann.

 

Again, the first method would be more appropriate because we'll be able to associate the PayPal fee to the donation. This will also credit the donor with the full donation amount ($20).


We'll need to change a few steps in this method. You can follow the steps I've provided on my earlier reply.

 

Also, I'd recommend consulting your accountant about this. They know what method suits your business.

 

Fill me in if you need anything else.

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