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Community Contributor *

Paypal transaction fees and class parameter?

In the "Banking" section of Quickbooks Online, I routinely have to go into the feed for our Paypal account and "add" for the backlog transactions. The transactions are from people who donate to our organization. Their donations cause sales receipts that need to be classified and added.

 

If I assign the correct class from the banking section's tab for the paypal bank, unfortunately, the paypal fee gets assigned the same class as the donation. I have to go into the "profit and loss by class report" after the fact and find all these transaction fees and then manually select the correct class one by one.

 

For nonprofit fund accounting a la UCAS, the net amount should go into the "unrestricted funds" class and the paypal fee needs to go under fundraising.

 

Am I missing something? Does anyone know how to automate this process so that the bank deposit that is generated along with the sales receipt is correct?

Solved
Best answer 06-17-2019

Accepted Solutions
QuickBooks Team

Re: Paypal transaction fees and class parameter?

Hello there, @bloodstainedmen.

 

I'm here to help share information about classifying banking transactions in QuickBooks Online (QBO).

 

We can only automate the memorizing/categorizing banking/downloaded transactions through bank rules as mentioned above. However, as of now, there isn't an option to automate the class assignment to separate the net amount from the fee portion to its appropriate class on the banking page. To classify the transactions, you may need to do it manually and individually.

 

For more information about assigning, categorizing, editing, and adding downloaded banking transactions, you may check this article: Assign, categorize, edit, and add your downloaded banking transactions.

 

Please don't hesitate to add a comment below if you have any other banking questions, I'll always be here to help. Wishing you the best!

9 Comments
QuickBooks Team

Re: Paypal transaction fees and class parameter?

Hello there, bloodstainedmen.

 

You can create a split transaction. This allows you to divide a transaction into multiple categories.

 

Here's how:

  1. Go to Banking.
  2. Select the For Review tab.
  3. Click the transaction, then click Split button.
  4. In the Split Transaction window, enter the necessary information.
  5. Click Save and Add.

Once done, go to the Reviewed tab and locate the created transaction.

 

I'm always around if you have additional questions about the process.

Community Contributor *

Re: Paypal transaction fees and class parameter?

Hi Glinette,

 

Thank you for the reply but I do have to ask for further clarification here.

 

1) I don't have a "split" button when I look at the transaction in the review tab.

2) I think what Quickbooks Online is doing when I go into the details section is that it's giving details on the sales reciept, but the sales reciept doesnt show any information about the paypal fees. The paypal fees I think only actually appear on the associated bank deposit.

 

Are we sure we're both talking about the same intuit product? Mine seems to be different than what your instructions indicate.

Best Regards,
Dominic

QuickBooks Team

Re: Paypal transaction fees and class parameter?

Let me answer your question about assigning classes on you PayPal transactions, Dominic.

 

You can create a bank rule to automate the class assignment. You can set conditions like if a transaction contains "PayPal Fee" words, the "Fundraising" class is automatically assigned to it.

 

You can find more information about adding rules in this article: How to set and use banking rules for downloaded transactions.

 

Please let us know if you have other questions.

Community Contributor *

Re: Paypal transaction fees and class parameter?

OK, thank you Jess, however, this rule strategy doesn't seem to do the trick. It seems like the rule you demonstrated applies to the entire paypal bank transaction under review, and does not separate the fee portion to its appropriate class. The rule seems like it needs to apply to the bank deposit, and not the sales reciept. The sales reciept is what shows up under the paypal bank feed.

QuickBooks Team

Re: Paypal transaction fees and class parameter?

Hi bloodstainedmen,

 

Thanks for the additional details. Can I ask for the screenshot of your PayPal feeds transactions that you want to classify as "unrestricted funds" and "fundrasing"? Thanks in advance.

Community Contributor *

Re: Paypal transaction fees and class parameter?

Hi Jess,

In this post, please see the screenshot of the Paypal Banking Feed. There doesn't seem to be any way to review these transactions that allows the user to, at review time, assign distinct classes to the "net" portion and to the Paypal fee portion. There is a gross amount donated (e.g. $10 from Jessica,) and QBO and Paypal automatically have identified the fee (e.g. $0.52)  and the net (e.g. $9.48). I want to classify the net as Class 992 Unrestricted Funds and the fee as Class 700 Fundraising.

 

At present, the only way I am aware of assigning one class to the "net" monies and another class to the fee itself is to do so first accepting the transaction for review from the bank feed with one of the desired classes, and then going, transaction by transaction, and finding all of the (now incorrectly classed) fees by using a custom report and reclassifying them, one by one.

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Community Contributor *

Re: Paypal transaction fees and class parameter?

 
QuickBooks Team

Re: Paypal transaction fees and class parameter?

Hello there, @bloodstainedmen.

 

I'm here to help share information about classifying banking transactions in QuickBooks Online (QBO).

 

We can only automate the memorizing/categorizing banking/downloaded transactions through bank rules as mentioned above. However, as of now, there isn't an option to automate the class assignment to separate the net amount from the fee portion to its appropriate class on the banking page. To classify the transactions, you may need to do it manually and individually.

 

For more information about assigning, categorizing, editing, and adding downloaded banking transactions, you may check this article: Assign, categorize, edit, and add your downloaded banking transactions.

 

Please don't hesitate to add a comment below if you have any other banking questions, I'll always be here to help. Wishing you the best!

Community Contributor *

Re: Paypal transaction fees and class parameter?

Thank you Angelyn. It is quite helpful to have confirmation of what I had started to suspect was the case: not only is not apparently not possible for QBO to automatically handle the correct classifcation, it's apparently not even possible to correctly classify the fee at manually at transaction review time. This split classification must be done post-hoc in addition to the review process. One must run a custom report. Frankly, Intuit should be embarrassed by this. This paypal integration is half-baked.