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AliN
February 23, 2018
Solved

PayPal Fees

  • February 23, 2018
  • 53 replies
  • 70 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

      53 replies

      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? 

          ClayJ
          ClayJ
          July 20, 2018

          Thank you LilyC for your suggestions, but we have the Desktop version of QB Enterprise and it looks like this only applies to users of Online version. 

          The articles are interesting nonetheless, thank you.


          Hello, @SkyFlower.

           

          Welcome back to the Community. Allow me to elaborate a little more about my earlier post. I was explaining bank rules for both QuickBooks Online and QuickBooks Desktop to sbraver to help clarify what can and cannot be done with that feature.

           

          As for connecting PayPal to QuickBooks Desktop, you can integrate that platform via a 3rd party app. Because there are many different apps in the App store, my best recommendation in this situation is to check out the website to find a provider that best meets your needs in this regard. You can reach that site via this link. 

           

          I hope you find what you're looking for. If you have any additional questions about the information I've provided, please feel free to reach out to me here in the Community.

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