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A
AliN
February 23, 2018
Solved

PayPal Fees

  • February 23, 2018
  • 1 reply
  • 35 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

        A
        Anonymous
        December 31, 2018

        We had to do journal entries for the paypal fees , 

        how can I go back to get rid of the journal entry and fix the check register.

        The above will work going forward but have to reconcile several months of bank statements and journal entries have already been done for the paid invoices.

         

        Thank you

        Pamela

        AlcaeusF
        AlcaeusF
        Level 14
        December 31, 2018

        Hello there, @401118.

         

        Thanks for joining us here in the Community. I can help you delete a journal entry in QuickBooks.

         

        The steps to do this will differ depending on which QuickBooks version you're currently using.

         

        For QuickBooks Desktop (QBDT), here's how:

         

        1. Go to Company or Accountant menu at the top, then pick Make General Journal Entries on the drop-down.
        2. Click the Previous arrow to open the previous journal entry.
        3. Press Ctrl + letter D on your keyboard, then choose OK to delete.

         

         

         

         

        For QuickBooks Online (QBO), here's how:

         

        1. Go to the Gear icon at the upper right, then pick Chart of Accounts under Your Company column.
        2. Locate the appropriate account for the transaction, then choose View Register (or Account History) from the Action column.
        3. Click the journal entry, then pick Delete.
        4. Select Yes to confirm that you want to delete the transaction.

         

        For more information, you may check out this article that tackles reversing or deleting a journal entry in QBO.

         

        That's it! Please let me know how it goes or if I can be of additional assistance by leaving a comment below. I'm only a post away if should you have any follow-up concerns. Take care and have a good one.

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