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
54 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?

JaneD

Level 6

Looking to be able to do this automatically

Hi WeLovePrinting,

Right now, the option to record PayPal fees automatically in QuickBooks is unavailable. Your input gives our product engineers ideas on changes. Most of the tweaks in QuickBooks are coming from users' suggestions.

I'll take note of your idea and send this directly to them. They can put customer's ideas to work in the future.

In the meantime, I suggest checking back for any enhancements and announcements through these links:

Stay tuned for more updates by also connecting with us here in the Community. If you have any other concerns, let us know. We're always here to help.

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