Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
Talk to Sales: 877-683-3280
Hours
Mon - Fri, 5am - 6pm PST
Sat - Sun, 7am - 4pm PST
Product support & help
Need help signing in?
A
AliN
February 23, 2018
Solved

PayPal Fees

  • 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:

 

 

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

 

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

 

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

 

  1. 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.

 

  1. 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

      1 reply

      john-pero
      john-peroAnswer
      Level 12
      February 24, 2018

      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
        March 20, 2018

        but what expense category would you use? 

          S
          SkyFlower
          July 20, 2018

          Hey @SkyFlower,

           

          What is your current process for managing customer payments? Is your concern about the amount of work/complexity that goes into calculating out fees for every transaction made with a system like PayPal? Or are you more focused on finding the simplest experience for your team (which is worth its weight in gold :) ). 


          Hi James

          Currently our method for receiving credit card payments for goods, is as follows:

          1. Customers salesorder placed online with credit card, which is pre-approved by Authorize.net

          2. Goods selected, shipping calculated etc, invoice created.

          3. Payments captured online on www.Authorize.net 

          4. In QuickBooks: Customers > Receive Payments > Payment Amount (exact amount of payment entered) > Save

          5. Invoice printed, date-stamped PAID by QuickBooks, and included with shipment.

           

          Employees do all of this easily.

          Every evening I go into QuickBooks and make the deposits, separating the different payment methods into separate deposits, etc.

           

          My concern is how to easily implement the PayPal payments (step 4 above).

          I like the suggestion by other user sbraver above "Can we then set a RULE that if payments come in this way, the PayPal fee is automatically generated and recorded?"

          This to me would e ideal. The reply by ClayJ to this comment did not make sense to me and did not seem to address the issue though.

          Thank you for your help!

           

           

           

          Need QuickBooks guidance?
          Log in to access expert advice and community support instantly.
          Terms & ConditionsAccessibility statement