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Cash Advance from credit card via paypal

QB desktop version 11

I need help learning how to record the following:


We received a cash advance from our credit card via our paypal system. So not only do I have to record the deposit into our bank, but I need to reflect the paypal fee that is is taken out.

For example: Chase credit card cash advance = $2000.00

                                                                       Paypal fee = 48.30,

                                                               total deposit = 1951.70

Thank you!!



Hi there, CHTgrammy2.


Thanks for joining the Community. I'm here to help and guide you with recording the cash advance payment in QuickBooks Desktop.


You can record the cash advance by entering the $2000 amount and debiting your expense account with the $48.30 PayPal fee to reflect the total deposit of $1951.70.


Let me show you how:

  1. Go to Banking.
  2. Make Deposits.
  3. Choose an account in the Deposit To drop down and set the date range.
  4. Select a customer in the Received From column.
  5. In the From Account column, select Accounts Receivable and enter $2000 in the Amount field. 
  6. Choose an expense account in the second line item and enter the -$48.30 PayPal fee.
  7. Once you're done, click on Save & Close.

I've attached some screenshots below to help you with the process.





You can also check out this article for your reference: Deposit customer payments.


This should help you record the cash advance. Please let me know if you have further questions. I'm always glad to answer them. Have a nice day.

View solution in original post

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You were so helpful before so yes, I have another question!! 

Again, using desktop QB 11.

Customer paid via Paypal so I recorded the payment (with the necessary fees recorded to paypal).

I then had to issue customer a refund via paypal. This came through our bank as a paypal echeck. 

Normally, I would issue the refund through the customer account and it would CR deposit back.

But now the actual refund is more than the original amount to account for the fee paid back to paypal. SIGH. To make it worse, it is the SMALLEST amount EVER. Did I explain that ok? 



It's nice to see you again, @Anonymous!


Let me join into this thread, share a few insights about your PayPal refund and help you from there.


To start with, let's review the amount of your refund transaction making sure that it is the same as the PayPal fees amount taken out from your bank.


Let me show you how:

  1. Go to Customers.
  2. Select Customer Center.
  3. Choose your customer who receives the refund.
  4. Find and double click to open your refund transaction.
  5. Enter the necessary changes of the amount.
  6. Click Save & Close.

In addition, here's an article you can read to learn more about customer refund: Record a Credit Memo or Refund in QuickBooks Desktop.


Lastly, feel free to visit our Help Articles page for QuickBooks Desktop if in case you need to learn some "How Do I" steps.


It'll be always my pleasure to help if you have any other questions. I'll be keeping an eye for your response.

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@JonpriL  THank you so much for your response. 

I am definitely adding your info to my knowledge base. 

I DO know how to record refunds and such but paypal is really throwing me so if I may, I'm going to be very specific.

Invoice is for $15.

Paid via paypal = $14.37

So I recorded the payment in QB as 14.37 and recorded the $.63 Discount to Paypal Merchant Fees. 

Now I need to refund this but paypal actually issued the refund as $14.67 to reflect their discount for the refund. I am unsure as to how to correctly record this. 



Hello there, CHTgrammy2.


Thanks for visiting the Community. It's my pleasure to guide you on how to handle refunds in QuickBooks Desktop.


If you want to record a refund from Paypal, you can simply Write Checks and use Accounts Receivable as your account. I'll be sharing you the steps on how to do it below:


  1. Go to Banking.
  2. Click Write Checks.
  3. Under Expenses, choose Accounts Receivable (AR) and Customer name.
  4. Enter the amount ($14.67) and other necessary information.
  5. Click Save & Close.

Here's an article that provides a detailed steps on how to Write Checks in QuickBooks Desktop: Create, modify, and print checks.


That's it. Please don't hesitate to let me know if you have further questions aside from recording refund with Paypal fees. I'd be glad to help you out.

Level 1


How do I add a cash advance from Stripe and also record the cash advance repayments? 



Hello, reylenea1.


We can set up a new account for the cash advance. The new one will be a liability account.


Here are the steps to follow:

  1. Click Lists from the main menu and select Chart of Accounts.
  2. In the Chart of Accounts window.
  3. Click the Account drop-down arrow below and select New.
  4. Select Other Current Liability as the account Type.
  5. Click Continue.
  6. Enter the necessary information.
  7. Then, hit OK.





Once done, please consider following  the next steps this article: Manage upfront deposits or retainers.


Visit this thread again if you need more help with QuickBooks. We're just around.