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The customer originally paid by paypal but now wants a refund. I am giving her a full refund by check. how do i enter the expense for a paypal transaction fee?

 
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QuickBooks Team
QuickBooks Team

The customer originally paid by paypal but now wants a refund. I am giving her a full refund by check. how do i enter the expense for a paypal transaction fee?

Let me help you record a customer refund that was paid through Paypal in QuickBooks Online (QBO), jokittens---28-.

 

To track this one, we can enter an expense or checks and add an account for the fee. Then, consult your accountant on what posting account we need to use for the Paypal transaction fee.

 

Here's how:

 

  1. Click the New plus transaction.
  2. Choose Check under Vendors.
  3. Enter the details in Payee, Bank Account and Payment date.
  4. Tick the Category drop-down under the Category details and choose the income account for the refund.
  5. On the second line, tick the drop-down button and select Add new to set up the fee. 
  6. Choose Expenses in the Account Type and for the Detail Type, please consult your accountant for the specific account.
  7. Type the Name, Number and Description.
  8. Tick Save and Close.
  9. Then, fill in the fields for Description, Amount and Class in the check transaction.
  10. Press Save and close.

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Then, match the refund transaction from Paypal into your bank feeds transactions. You can refer to this article for the detailed steps about matching bank transactions: Match and categorize bank transactions in QuickBooks Online.

 

I've got a link here that provides you with articles about managing your bank feeds: Find help with bank feeds and reconciling accounts.

 

Keep me posted if you need a hand with with reconciling your Paypal or bank account or any QBO related. I'll be here to help. Have a great day ahead.

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