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A
AliN
February 23, 2018
Solved

PayPal Fees

  • February 23, 2018
  • 1 reply
  • 26 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

        R
        redbaron40987
        March 20, 2018

        but what expense category would you use? 

          J
          jasper-simonds
          December 31, 2020

          Thanks for joining in on this thread, Gr10.

           

          We still don't have the option to record the PayPal fees automatically in QuickBooks Online. We have three ways to record the processing fees in QuickBooks Online. You can select either of the following that is convenient for you:

          • You can Find Match the bank transaction and use the Resolve Difference feature.
          • Create a separate Expense or Check to record the processing fees.
          • Include the processing fees when creating a bank deposit.

          You can go to PreciousB's response to see the detailed information on every options that I've mentioned.

           

          We'll take note of this feedback. We'll keep on working to ensure that the program can provide the functions or features needed to manage your businesses. You can always visit these links to see product updates:

          Let us know if you need anything else that we can help you with.


          Ok this is the most maddening thing ever... I used to make software and this is not intuitive...

           

          If QB finds the right invoice match on the initial matches found (14 total)  and you click match, everything works and the fee and deposit match and are attached to paypal bank...

           

          If however you have to click "find other matches"(most of the time for me), than for some reason it unlinks the fee and deposit, putting the deposit in paypal bank and the fee in undeposited fee... and they are not easy to link back up...

           

          Not only that, but I just figured that out after 100s of transactions because it should have worked with the match function...

           

          (on a side note you should be able to link a customers paypal account to your customer in QB so you only see that customers invoices)

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