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Level 1

Need to transfer PayPal fees from my PayPal Account (Bank) to my PayPal Fees (Expense)

Before I realized about the PayPal fees I had the full amount in my Undeposited Funds from a customer. So I deposited the entire amount to my checking account in QB. Then I went back into the checking account register and did a negative amount for the PayPal fees so the correct amount would be deposited. I then deposited the fee amount back into my PayPal Account (Bank). Now I am trying to now move that fee amount from PayPal Account (bank) to PayPal fees (expense) in QB. How do I that? Also going forward what is the best way to disperse the fees to the PayPal expense account, and the rest to the PayPal bank account?
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Best answer 12-10-2018

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Level 15

Need to transfer PayPal fees from my PayPal Account (Bank) to my PayPal Fees (Expense)

"Then I went back into the checking account register and did a negative amount for the PayPal fees so the correct amount would be deposited."

That is one way to do it.

"I then deposited the fee amount back into my PayPal Account (Bank)."

That is the mistake. You never enter the same data twice, and this is not a deposit. If you already reduced your Real bank deposit by entering the fee as expense there, you stop there. Don't keep making entries.

"Now I am trying to now move that fee amount from PayPal Account (bank) to PayPal fees (expense) in QB."

Look at your expense account; you already did this based on your initial statement. That additional entry you made as a deposit to PP is to be deleted.

"Also going forward what is the best way to disperse the fees to the PayPal expense account, and the rest to the PayPal bank account?"

"PP" expense is simply Banking Expense.

In the PP Bank, you should have deposited your Customer's full payment here. Then, in the PP bank account you enter the fee you incurred.

Then, when money has been settled to your real bank account, this is not Sales or Income again. It is just a transfer, from PP to Checking.

View solution in original post

5 Comments
Highlighted
Level 15

Need to transfer PayPal fees from my PayPal Account (Bank) to my PayPal Fees (Expense)

"Then I went back into the checking account register and did a negative amount for the PayPal fees so the correct amount would be deposited."

That is one way to do it.

"I then deposited the fee amount back into my PayPal Account (Bank)."

That is the mistake. You never enter the same data twice, and this is not a deposit. If you already reduced your Real bank deposit by entering the fee as expense there, you stop there. Don't keep making entries.

"Now I am trying to now move that fee amount from PayPal Account (bank) to PayPal fees (expense) in QB."

Look at your expense account; you already did this based on your initial statement. That additional entry you made as a deposit to PP is to be deleted.

"Also going forward what is the best way to disperse the fees to the PayPal expense account, and the rest to the PayPal bank account?"

"PP" expense is simply Banking Expense.

In the PP Bank, you should have deposited your Customer's full payment here. Then, in the PP bank account you enter the fee you incurred.

Then, when money has been settled to your real bank account, this is not Sales or Income again. It is just a transfer, from PP to Checking.

View solution in original post

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Level 1

Need to transfer PayPal fees from my PayPal Account (Bank) to my PayPal Fees (Expense)

Ok, so I deleted that deposit you suggested and deposited the full amount to my PayPal bank account. Then on the same journal entry I recorded a payment to my PayPal expense fee. So the PayPal bank account is showing the correct amount and I will transfer to my checking account once the money actually shows up in my real bank. However, I don't see the paypal fee amount showing in my PayPal expense account, even though I made a 'payment' to it out of the PayPal bank account. Did I do it wrong? Took a screenshot but didn't know how to post it here. Thanks!
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Level 15

Need to transfer PayPal fees from my PayPal Account (Bank) to my PayPal Fees (Expense)

"Then on the same journal entry "

You should NOT be using a JE.

For the customer, this either is from a Sales Receipt or from a Received Payment against an invoice. That means either this transaction posted directly to the PP register, or your data file is using Undeposited Funds and you are going to use Make Deposit to record this activity.

Never JE.

And since PP hits your account with the individual sales activities, I would suggest the sales receipt or Receive Payment for PP "payment method" activities should post directly to your PP bank account.

"I don't see the paypal fee amount showing in my PayPal expense account, even though I made a 'payment' to it out of the PayPal bank account."

And you do this in QB by using Write Check, from the PP account, or make this entry directly in the Register of the PP account. Or, on the Deposit screen, where you have selected the payment flowing from Undeposited Funds to the Deposit entry screen, on the Next Blank Line, you enter the Bank Fee as the "from" account and Do Not Put A Name On This Line, and enter the fee as a negative. Now this deposit entry will be the Net to the PP account.

"Did I do it wrong? Took a screenshot but didn't know how to post it here."

You have to hit Answer, not Comment.
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Level 1

Need to transfer PayPal fees from my PayPal Account (Bank) to my PayPal Fees (Expense)

Thank you very much! I used your 3rd option and reflected the fee as a negative on the deposit from Undeposited funds to PP account.
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Level 15

Need to transfer PayPal fees from my PayPal Account (Bank) to my PayPal Fees (Expense)

Glad to give you some help.

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