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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? 

          AlcaeusF
          AlcaeusF
          Level 14
          December 31, 2020

          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)


          Hello @jasper-simonds,

           

          We want to help you with your concern about the Find match feature. However, we need more information about it to provide the right resolution and to get this sorted out promptly.

           

          Can you share more information about the deposit going to the PayPal bank and the fee to the undeposited section? Any additional details like screenshots will help us provide an accurate solution to the problem.

           

          In the meantime, you can check the following articles to know more about matching downloaded transactions, as well as how to unmatch them in QuickBooks Online:

           

          Please know that you're always welcome to post any questions you have in this space. Have a great day ahead.

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