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One of my clients has the Paypal feed in QBO. If they refund a customer, the refund and the reversed Paypal fee come through as 2 separate transactions. How do you record the reversed paypal fee?
For example, my client makes a sale for $100 and Paypal takes $2.60 of that for their fee. My client's customer decides to cancel the sale and my client refunds the customer in full. When the refund comes through on their Paypal feed, it shows $100 Spent and $2.60 Received. I know how to record customer refunds but I'm a little lost on how to record the Paypal fee reversal. Please advise. Thank you.
Solved! Go to Solution.
Let me clear out the confusion for you, @Blondimlb. Rest assured that I've got the steps to record the $2.60 PayPal reversal fee. This can be done by entering a deposit. It will offset the original charge in the Bank Fee or expense account your client is using. I'll guide you how.
The screenshot below shows you the last seven steps. For detailed instructions, check out this article: Record and Make Bank Deposits.
Once done, go to the For Review tab. From there, you'll be able to match the $2.60 Received to the deposit you've just created. This helps you avoid duplicates in the program.
Aside from PayPal transactions, you can edit, assign, and categorize the other ones. This ensures your client's financial records are correct. To learn more about this process, go through this article: Categorizing Downloaded Bank Transactions.
Moreover, it's a great idea to reconcile your client's PayPal account monthly. Doing so will ensure the account in QuickBooks matches your client's bank statement. For more details, visit this article: Reconciling An Account.
Please know that I'm always here to help if you need further assistance. Have a great rest of your day, @Blondimlb.
Let me clear out the confusion for you, @Blondimlb. Rest assured that I've got the steps to record the $2.60 PayPal reversal fee. This can be done by entering a deposit. It will offset the original charge in the Bank Fee or expense account your client is using. I'll guide you how.
The screenshot below shows you the last seven steps. For detailed instructions, check out this article: Record and Make Bank Deposits.
Once done, go to the For Review tab. From there, you'll be able to match the $2.60 Received to the deposit you've just created. This helps you avoid duplicates in the program.
Aside from PayPal transactions, you can edit, assign, and categorize the other ones. This ensures your client's financial records are correct. To learn more about this process, go through this article: Categorizing Downloaded Bank Transactions.
Moreover, it's a great idea to reconcile your client's PayPal account monthly. Doing so will ensure the account in QuickBooks matches your client's bank statement. For more details, visit this article: Reconciling An Account.
Please know that I'm always here to help if you need further assistance. Have a great rest of your day, @Blondimlb.
Thanks!
Hello,
Adding to this thread:
How would you categorize the PayPal refund in the case of the charitable contribution to a nonprofit?
I assume the fee reversal would be categorized in the same manner described below?
Thanks!
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