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?

ClayJ

Thank you for clarifying ClayJ

Do any of these Aps work with desktop version - I tried the obvious PayPal one, but it did not seem to at first try.

Do you have any 3rd Party Ap suggestions? (low cost or free) as I have not heard of any of them - Thx!

Hey again, @SkyFlower.

Thank you for getting back to me. I'm unable to make any specific recommendations, as there are many apps in the store; however, I can confirm there are plenty of apps that do integrate with the desktop version. I recommend checking with PayPal directly, as they might be able to suggest one such solution that allows their program to link with ours.

I hope this information helps. Feel free to reach out to me if you have any additional questions.

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