How do I record PayPal fees. I used to click on the plus sign at the top right hand corner of the Quickbooks page and click bank deposit but that is no longer there.

Hi sondra-green!

If the PayPal fee shows as a different transaction in your connected bank account, you can just wait until it's downloaded on the banking page. That way, you can add it to your bank register in QBO.

Another option is to pay the invoice in full. Then, when you deposit the invoice payment, just deduct the PayPal fee, as shown below.

That will do it. If you have other questions about recording PayPal fees, just let me know.

@sondra-green 

As another option, explore this connector to reconcile PayPal transactions into your QBO account.

https:// synder.grsm.io/quickbooks

Hi,

 I've created an invoice for the customer in QKBKS premier plus. Then in Paypal business app have made a short version of this invoice and sent to customer for payment. I have moved payments into my bank account. I have marked receive payments using Paypal Account as source of payment, but it leaves a negative "underpayment" to the invoice. How best to handle this so my bookkeeping doesn't get screwed up?

BTW, I have created a bank account called Paypal Account, an expense account Paypal Fees and an income account called Paypal Sales. I am hesitant to download activity from Paypal into QKBKS, just bc I don't want duplicates that makes things more messed up. YOUR ADVISE PLEASE!

Thank you,

NJ

Thanks for sharing your first concern in this thread, @Grafxbrd. The negative amounts are caused by Credit Memo entries, overpayments, or possible duplicate payments.

To fix this, you'll need to apply the deposit to the invoice. Here's how: 

1. In the Customers menu, select Create Invoices.
2. Choose the customer from the Customer:Job drop-down.
3. Enter the necessary information, then click Apply Credits.
4. Hit Yes to confirm the changes, then select the deposit from the Credits tab in the Apply Credits window.
5. Click Done to mark the invoice as paid, then hit Save & Close.

For future reference, check out this link to learn about fixing issues with account receivables in QBDT: AR Balance on the Chart of Accounts does not Match AR balance on Reports.

Get back to us here so we can help you more with your concerns. Have a good one!

@Grafxbrd 

Another option, utilize this app to seamlessly synchronize all PayPal transactions into your QuickBooks Desktop without any manual work.

https://synder.grsm.io/quickbooks