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AliN
February 23, 2018
Solved

PayPal Fees

  • 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:

 

 

  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

        D
        DJMon
        September 11, 2020

        Hello, 

         

        Once this is recorded in QB. How do I record the transfer from PayPal to my bank? 

         

        Thank you.

        Angelyn_T
        Angelyn_TModerator
        Moderator
        September 11, 2020

        Happy to have you here in this forum, @DJMon.

         

        I can share some steps on how you can record the transfer of amounts from PayPal to your bank.

         

        The process usually depends on how PayPal works with QuickBooks. If your PayPal bank is connected, then you can use the Bank Transfer feature to move the amount. On the other hand, if the PayPal app syncs with QuickBooks and imports your sales transactions, you can handle the transactions the same way as other transactions by finding a match from the Banking page.

         

        To record a bank transfer:

         

        1. Select Transfer under Other from the New (+) icon.
        2. Choose a bank account where the fund is coming from and where you want to transfer it.
        3. Enter the amount and the date of the transaction.
        4. Save the transfer entry.

        On the other hand, you can read the details from this link to learn more about managing PayPal app transactions from the Banking page.

         

        If there's something else that you need, feel free to leave a comment below. We'll reply as soon as we can.

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