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AliN
February 23, 2018
Solved

PayPal Fees

  • February 23, 2018
  • 1 reply
  • 20 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

        C
        Chrisckb
        September 16, 2019

        Hi,

         

        Thanks for posting this.  I've got it to work for me although can't work out how to do 'step 3 create deposit' on the android app. Is it possible? 

         

        C
        Chrisckb
        September 17, 2019

        Hello Chrisckb,

         

        Since the mobile app has a different platform, you'll want to access QuickBooks from a browser. This way, you can create a deposit. Let me guide you through how.

        1. Open a browser (Chrome, IE, or Firefox)
        2. Go to http://qbo.intuit.com.
        3. Enter your sign-in information.
        4. Then, click the (+) Create icon.
        5. Click Bank Deposit. Then, enter all the necessary information.
        6. Click Save and close.

        Once done, you can match the deposit to your downloaded transaction.

         

        You can also check our page to know more about mobile apps: Mobile applications hub.

         

        Feel free to drop by anytime if you have other questions.


        Great,  thanks

        Maybe something you guys could add to the app in a future update!

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