Hello, I have a question about PayPal Fees and how to record them properly. Here my question and workflow: Customer calls and places an order (invoice) or places an order directly via online store (bigcommerce). For an item that cost $100.00. (Example) I or BigCommerce record this sale with the customers full set of details, Invoice for manual order, sales receipt for bigcommerce automation. Customer pays via PayPal Invoice or Automatically during BigCommerce PayPal Express checkout. We login to PayPal and see that we have $97 per transaction (-$3 less PayPal fee) and transfer the funds over to the bank on a per transaction basis. 2-3 days later our bank shows each fund has been recieved and quickbooks online syncs the payments for $97. 6. Recording the PayPal Fee per Transaction is the issue, how do you match these amount to the Invoice or Sales receipt and account for the PayPal fees in Quickbooks online? I've seen others with the same question but i don't believe the solutions provided are uptodate and or the appropriate way of accounting for the fees.

A

AliN

Solved

PayPal Fees

Forum|Forum|8 years ago
February 23, 2018
1 reply
32 views

Hello,

I have a question about PayPal Fees and how to record them properly.

Here my question and workflow:

Customer calls and places an order (invoice) or places an order directly via online store (bigcommerce). For an item that cost $100.00. (Example)

I or BigCommerce record this sale with the customers full set of details, Invoice for manual order, sales receipt for bigcommerce automation.

Customer pays via PayPal Invoice or Automatically during BigCommerce PayPal Express checkout.

We login to PayPal and see that we have $97 per transaction (-$3 less PayPal fee) and transfer the funds over to the bank on a per transaction basis.

2-3 days later our bank shows each fund has been recieved and quickbooks online syncs the payments for $97.

6. Recording the PayPal Fee per Transaction is the issue, how do you match these amount to the Invoice or Sales receipt and account for the PayPal fees in Quickbooks online? I've seen others with the same question but i don't believe the solutions provided are uptodate and or the appropriate way of accounting for the fees.

Best answer by john-pero

Does not matter if it is QB online ir desktop, the procedure is exactly same, correct and up to date.

1. Sell item for $100

2. Record received payment of $100 posted to Undeposited Funds

3. Create deposit selecting the $100 item (or all that are in one deposit as is case with Square)

4. Add line item negative processing fee for $3

5. Save net deposit of $97

6. Accept green match

Works every time AND IS proper and accepted accounting

john-peroAnswer

Level 12

Does not matter if it is QB online ir desktop, the procedure is exactly same, correct and up to date.

1. Sell item for $100

2. Record received payment of $100 posted to Undeposited Funds

3. Create deposit selecting the $100 item (or all that are in one deposit as is case with Square)

4. Add line item negative processing fee for $3

5. Save net deposit of $97

6. Accept green match

Works every time AND IS proper and accepted accounting

R

redbaron40987

but what expense category would you use?

S

SkyFlower

Good afternoon, sbraver.

I have some insight I'd like to share with you about bank rules. In both QuickBooks Online and QuickBooks Desktop, bank rules allow you to pre-customize transactions as they come in via Bank Feeds. Both platforms allow for auto-assigning a payee and an income/expense account. QuickBooks Online goes a little further by adding the extra layer for a Class, Location, and a Memo field. If you'd like to read more, I'm attaching the articles on Bank Feeds for both Desktop and Online down below. If you have any additional questions about this, feel free to reach out to me.

Online: https://community.intuit.com/articles/1145469-banking-rules-and-recognition-for-downloaded-transactions

Desktop: https://community.intuit.com/articles/1550952-use-renaming-rules-for-bank-feeds

Hello

Up until now I have always avoided offering Paypal as a customer payment option, as Paypal draws out charges/commission on a sale by sale basis. It is so much easier to apply exact payments to every invoice, paying bank merchant fees on a monthly basis, separate from the invoice transactions themselves. I read your linked suggestions, but still do not understand how to set things up to (easily - ie., easy enough for my employees too) receive Paypal payments on Quickbooks invoices.

Any help appreciated, thank you

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