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tayloredbrandsll
Level 1

Hello! How can I track eBay expenses - such as fees from selling on the platform? eBay sends payouts after fees and shipping are taken out. Is there a setting in the app?

As of now, we receive the payouts daily from eBay, but since it already includes the fees and shipping expense, we don't want to double report them.
4 Comments 4
Rose-A
Moderator

Hello! How can I track eBay expenses - such as fees from selling on the platform? eBay sends payouts after fees and shipping are taken out. Is there a setting in the app?

Hey there, tayloredbrandsll. Let's get your eBay expenses tracked in QuickBooks Online.

 

You can manually record the fees and shipping expenses in QuickBooks Online by adding another line item for the expenses upon depositing the payments and entering them in a negative amount.

 

Here's how:

 

  1. Click + New in the left panel and choose Bank Deposits.
  2. Select the invoice payment.
  3. In the Add funds to this deposit field, choose the relevant account for fees and shipping expenses.
  4. Enter a negative amount, under Amount.
  5. Hit Save and close.

 

After that, once the payouts show on your banking page, you can match the transactions from there. In case you want to reconcile the account, you can follow the guide in this article: Reconcile an account in QuickBooks Online. This will provide you with steps on how to manually reconcile your account that's not connected to online banking.

 

Let me know if there's anything else you need in QuickBooks, I'll be around to help. Have a good one.

Rose-A
Moderator

Hello! How can I track eBay expenses - such as fees from selling on the platform? eBay sends payouts after fees and shipping are taken out. Is there a setting in the app?

Hi, tayloredbrandsll.

 

Hope you're doing great. I wanted to see how everything is going about tracking eBay expenses. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I'd be happy to help you at anytime.

 

Looking forward to your reply. Have a pleasant day ahead!

Erik0311
Level 1

Hello! How can I track eBay expenses - such as fees from selling on the platform? eBay sends payouts after fees and shipping are taken out. Is there a setting in the app?

Hi Rose, I have been selling items on eBay and have a question regarding ebay payouts. When I receive a payout, they take out ad fees, shipping label costs, etc. Do I need to worry about accounting for the deductions and create separate line items when I enter the payout amount in quickbooks? I just want to to make sure when I file my taxes, I'm able to deduct for shipping expenses, ad fees, etc. I wasn't sure if I could just enter the payout as income and be done with it, or if not adding up the expenses will throw off my end of year profit vs expenses where I end up not getting credit for expenses throughout the year.

Thanks, 

Erik 

AnneMariee
QuickBooks Team

Hello! How can I track eBay expenses - such as fees from selling on the platform? eBay sends payouts after fees and shipping are taken out. Is there a setting in the app?

Thanks for posting in the Community, Erik0311.

 

I'm here to help you record your transactions with fees in QuickBooks Online (QBO).

 

First, you'll need to record the fees correctly to properly account for the different fees during the payout. To do this, create a sales receipt to record your third-party sales and tax.

 

Here's how:

 

  1. Click the + New button, then select Sales receipt.
  2. Select the payment processor from the Customer dropdown. If you still need to set them up in QuickBooks, select + Add new.
  3. Enter the sales info.
  4. Click the Deposit to dropdown and choose the account you use to record sales. 
  5. In the Product/Service column, choose what you sold and enter the amount minus fees.
  6. Hit Save and close.

 

Afterward, you'll need to create an expense to record the fees you paid for the sale.

 

  1. Click the + New button, then select Expense.
  2. Choose the payment processor from the Payee dropdown. If you still need to set them up in QuickBooks, select + Add new.
  3. In the Category column, choose the expense account to record the fee and enter the amount.
  4. Hit Save and close.

 

Once done, you can match sales with your deposits. Furthermore, I recommend consulting an accountant when going through the process of selecting the correct expense accounts. They can guide you to ensure you're accurately recording your transactions. You can use our accountant tool to locate a nearby professional if you still need one.

 

You can read this article for more info on recording fees for third-party payments: Record third-party sales and fees.

 

For future use, here's an article on refunding customers in QBO: Record a customer refund in QuickBooks Online.

 

Feel free to let me know if you have additional questions about recording transaction fees in QuickBooks. I'm always here to help. Take care always.

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