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Reckon Account Right (formerly Quickbooks) – How to record the Paypal fees when I get paid

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Client called and said – I sell some of products on eBay  the customers usually pay with Paypal. Paypal, they just deduct their fees and deposit the balance at the time of the transaction. Can I record the fee at the time that I complete the sales receipt in Quickbooks because that’s when I have all the info in front of me, it would save me having to look back at every sale for that month and add up the Paypal fees. What’s the best way to record the fees like this?

Answer – Have a “bank” account setup called Paypal and record all transactions there same as a bank account.

Create the Sales Receipt and make sure that you’ve selected Undeposited Funds at “Deposit To” the bottom left. The customer pays in full but the Paypal fee isn’t on their receipt because that’s your overhead.
Go to Make Deposits and select this customer’s payment from the Undeposited Funds pop-up menu. Next, in the main deposit screen, Top Left Hand side, select “Deposit To” the Paypal bank account. The customer payment is listed on the first line in the table below. Go to the next line down, skip the Received From column, tab to the From Account column and enter Paypal Fees (an expense account you’ve setup, or Bank Fees). Tab to the Amount column and enter the Paypal fee amount as a negative number n(-).

The Steps –
Customers >Sales Receipt:
Customer …Item Purchased…$120.00..> Deposit To: Undep. Funds
Banking>Make Deposits
(Undeposited Funds pop-up):
Select Customer  and click OK
Make Deposits Screen:

Deposit To: Paypal Bank Account
line 1=Customer …Sales…$120
line 2=[ blank ]…Paypal Fees…. – $ .50
Total Deposit to *Paypal Checking* = $119.50

Save & Close
When you decide to transfer the money in your Paypal account to your bank account just use Banking>Transfer Funds and move funds from Paypal to Bank.

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Author: accountkeepingplus

Administration, bookkeeping and compliance for small business, Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, free support MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

One thought on “Reckon Account Right (formerly Quickbooks) – How to record the Paypal fees when I get paid

  1. This is really handy info. Thanks for sharing your QuickBooks expertise.

    Like

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