Accounting Talk Accounting Talk    FAQ   Search   Memberlist   Usergroups   Register   Profile   Log in to check your private messages   Log in  PayPal Fees          Accounting Talk Forum Index -> Quickbooks View previous topic :: View next topic   Author Message Sharif Guest Posted: Tue Jun 17, 2008 10:49 pm    Post subject: PayPal Fees Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. Back to top   Ads Advertising Sponsor Laura Guest Posted: Wed Jun 18, 2008 4:15 am    Post subject: Re: PayPal Fees "Sharif" <shariftk@gmail.com> wrote in message news:cdbc5e3b-8540-4f39-9f9e-733fca8bbe8d@a70g2000hsh.googlegroups.com... Quote: Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. There are a couple of ways to do it. What I do is to receive payment or do a sales receipt for the entire amount of the invoice. Put the $ into undeposited funds. Then use the Make deposit screen to move the customers payment to the bank account. On the next line enter a negative number for the $15 charged by PP. In the "From account" column enter the expense account you want to post the PP fees to. The net amount will be the amount of money you actually received in your bank. Back to top   Ads Advertising Sponsor Haskel LaPort Guest Posted: Wed Jun 18, 2008 6:23 am    Post subject: Re: PayPal Fees "Laura" <invalid@sample.invalid> wrote in message news:LAX5k.103981$SV4.76022@bgtnsc04-news.ops.worldnet.att.net... Quote: "Sharif" <shariftk@gmail.com> wrote in message news:cdbc5e3b-8540-4f39-9f9e-733fca8bbe8d@a70g2000hsh.googlegroups.com... Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. There are a couple of ways to do it. What I do is to receive payment or do a sales receipt for the entire amount of the invoice. Put the $ into undeposited funds. Then use the Make deposit screen to move the customers payment to the bank account. On the next line enter a negative number for the $15 charged by PP. In the "From account" column enter the expense account you want to post the PP fees to. The net amount will be the amount of money you actually received in your bank. If there are a couple of ways to do it why do you choose the most difficult? I would enter the receipt for 485.00 and check off the invoice for 500.00. When the program asks me what I want to do with the underpayment I would select write-off and enter the "Paypal Fees" account to post it to. > Back to top   Ads Advertising Sponsor QBConsultant Guest Posted: Wed Jun 18, 2008 11:59 am    Post subject: Re: PayPal Fees On Jun 17, 8:23 pm, "Haskel LaPort" <QBFan...@gmail.com> wrote: Quote: "Laura" <inva...@sample.invalid> wrote in message news:LAX5k.103981$SV4.76022@bgtnsc04-news.ops.worldnet.att.net... "Sharif" <shari...@gmail.com> wrote in message news:cdbc5e3b-8540-4f39-9f9e-733fca8bbe8d@a70g2000hsh.googlegroups.com.... Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. There are a couple of ways to do it. What I do is to receive payment or do a sales receipt for the entire amount of the invoice. Put the $ into undeposited funds. Then use the Make deposit screen to move the customers payment to the bank account. On the next line enter a negative number for the $15 charged by PP. In the "From account" column enter the expense account you want to post the PP fees to. The net amount will be the amount of money you actually received in your bank. If there are a couple of ways to do it why do you choose the most difficult? I would enter the receipt for 485.00 and check off the invoice for 500.00.. When the program asks me what I want to do with the underpayment I would select write-off and enter the "Paypal Fees" account to post it to. Both methods will work--so choose the one that you prefer. Michelle L. Long, CPA, MBA Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business http://www.SuccessfulQuickBooksConsulting.com http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-Starting/dp/1434810690 Quote: - Hide quoted text - - Show quoted text -- Hide quoted text - - Show quoted text - Back to top   Ads Advertising Sponsor Laura Guest Posted: Fri Jun 20, 2008 4:31 pm    Post subject: Re: PayPal Fees "Haskel LaPort" <QBFanBoy@gmail.com> wrote in message news:485863a4$0$11617$607ed4bc@cv.net... Quote: "Laura" <invalid@sample.invalid> wrote in message news:LAX5k.103981$SV4.76022@bgtnsc04-news.ops.worldnet.att.net... "Sharif" <shariftk@gmail.com> wrote in message news:cdbc5e3b-8540-4f39-9f9e-733fca8bbe8d@a70g2000hsh.googlegroups.com... Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. There are a couple of ways to do it. What I do is to receive payment or do a sales receipt for the entire amount of the invoice. Put the $ into undeposited funds. Then use the Make deposit screen to move the customers payment to the bank account. On the next line enter a negative number for the $15 charged by PP. In the "From account" column enter the expense account you want to post the PP fees to. The net amount will be the amount of money you actually received in your bank. If there are a couple of ways to do it why do you choose the most difficult? I would enter the receipt for 485.00 and check off the invoice for 500.00. When the program asks me what I want to do with the underpayment I would select write-off and enter the "Paypal Fees" account to post it to. We get several sales coming in at one lump. Recording the gross invoice by customer at the time of sale means we have initially recorded the sale into the PP account. When the bank transfer actually happens I use the Make Deposits to move the gross sale and record the fees to get the correct net amount into the bank account. It keeps our records in synch with how PP displays the history. Back to top   Ads Advertising Sponsor Haskel LaPort Guest Posted: Fri Jun 20, 2008 5:31 pm    Post subject: Re: PayPal Fees "Laura" <invalid@sample.invalid> wrote in message news:CyM6k.59618$102.17649@bgtnsc05-news.ops.worldnet.att.net... Quote: "Haskel LaPort" <QBFanBoy@gmail.com> wrote in message news:485863a4$0$11617$607ed4bc@cv.net... "Laura" <invalid@sample.invalid> wrote in message news:LAX5k.103981$SV4.76022@bgtnsc04-news.ops.worldnet.att.net... "Sharif" <shariftk@gmail.com> wrote in message news:cdbc5e3b-8540-4f39-9f9e-733fca8bbe8d@a70g2000hsh.googlegroups.com... Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. There are a couple of ways to do it. What I do is to receive payment or do a sales receipt for the entire amount of the invoice. Put the $ into undeposited funds. Then use the Make deposit screen to move the customers payment to the bank account. On the next line enter a negative number for the $15 charged by PP. In the "From account" column enter the expense account you want to post the PP fees to. The net amount will be the amount of money you actually received in your bank. If there are a couple of ways to do it why do you choose the most difficult? I would enter the receipt for 485.00 and check off the invoice for 500.00. When the program asks me what I want to do with the underpayment I would select write-off and enter the "Paypal Fees" account to post it to. We get several sales coming in at one lump. Recording the gross invoice by customer at the time of sale means we have initially recorded the sale into the PP account. When the bank transfer actually happens I use the Make Deposits to move the gross sale and record the fees to get the correct net amount into the bank account. It keeps our records in synch with how PP displays the history. In QuickBooks the user can set up more than one Accounts Receivable account. If I wanted to track how much was due from sales made using PayPay I would set up a new recivables account called called Accounts Receivable - PayPal. When recording the invoice I would simply indicate that the receivables account was Accounts Receivable - PayPal rather than my regular receivables account. > Back to top   Ads Advertising Sponsor Laura Guest Posted: Sat Jun 21, 2008 6:08 am    Post subject: Re: PayPal Fees "Haskel LaPort" <QBFanBoy@gmail.com> wrote in message news:485ba327$0$11625$607ed4bc@cv.net... Quote: "Laura" <invalid@sample.invalid> wrote in message news:CyM6k.59618$102.17649@bgtnsc05-news.ops.worldnet.att.net... "Haskel LaPort" <QBFanBoy@gmail.com> wrote in message news:485863a4$0$11617$607ed4bc@cv.net... "Laura" <invalid@sample.invalid> wrote in message news:LAX5k.103981$SV4.76022@bgtnsc04-news.ops.worldnet.att.net... "Sharif" <shariftk@gmail.com> wrote in message news:cdbc5e3b-8540-4f39-9f9e-733fca8bbe8d@a70g2000hsh.googlegroups.com... Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. There are a couple of ways to do it. What I do is to receive payment or do a sales receipt for the entire amount of the invoice. Put the $ into undeposited funds. Then use the Make deposit screen to move the customers payment to the bank account. On the next line enter a negative number for the $15 charged by PP. In the "From account" column enter the expense account you want to post the PP fees to. The net amount will be the amount of money you actually received in your bank. If there are a couple of ways to do it why do you choose the most difficult? I would enter the receipt for 485.00 and check off the invoice for 500.00. When the program asks me what I want to do with the underpayment I would select write-off and enter the "Paypal Fees" account to post it to. We get several sales coming in at one lump. Recording the gross invoice by customer at the time of sale means we have initially recorded the sale into the PP account. When the bank transfer actually happens I use the Make Deposits to move the gross sale and record the fees to get the correct net amount into the bank account. It keeps our records in synch with how PP displays the history. In QuickBooks the user can set up more than one Accounts Receivable account. If I wanted to track how much was due from sales made using PayPay I would set up a new recivables account called called Accounts Receivable - PayPal. When recording the invoice I would simply indicate that the receivables account was Accounts Receivable - PayPal rather than my regular receivables account. Now who is suggesting making more work??? I think my method works fine without creating another A/R account. My PP account is setup as a bank account. Back to top   Ads Advertising Sponsor QBConsultant Guest Posted: Sat Jun 21, 2008 1:54 pm    Post subject: Re: PayPal Fees I can see where both methods work--so use which ever one works for you. But, for the sake of friendly discussion--if the customer pays immediately with Paypal, it isn't really a receivable. It sits in the paypal account (like another bank account) until you transfer the $$ to your checking account. Michelle L. Long, CPA, MBA Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business http://www.SuccessfulQuickBooksConsulting.com http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-Starting/dp/1434810690 On Jun 21, 8:29 am, "Haskel LaPort" <QBFan...@gmail.com> wrote: Quote: "Laura" <inva...@sample.invalid> wrote in message news:0wY6k.119559$SV4.48730@bgtnsc04-news.ops.worldnet.att.net... "Haskel LaPort" <QBFan...@gmail.com> wrote in message news:485ba327$0$11625$607ed4bc@cv.net... "Laura" <inva...@sample.invalid> wrote in message news:CyM6k.59618$102.17649@bgtnsc05-news.ops.worldnet.att.net... "Haskel LaPort" <QBFan...@gmail.com> wrote in message news:485863a4$0$11617$607ed4bc@cv.net... "Laura" <inva...@sample.invalid> wrote in message news:LAX5k.103981$SV4.76022@bgtnsc04-news.ops.worldnet.att.net... "Sharif" <shari...@gmail.com> wrote in message news:cdbc5e3b-8540-4f39-9f9e-733fca8bbe8d@a70g2000hsh.googlegroups.com... Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. There are a couple of ways to do it. What I do is to receive payment or do a sales receipt for the entire amount of the invoice. Put the $ into undeposited funds. Then use the Make deposit screen to move the customers payment to the bank account. On the next line enter a negative number for the $15 charged by PP. In the "From account" column enter the expense account you want to post the PP fees to. The net amount will be the amount of money you actually received in your bank. If there are a couple of ways to do it why do you choose the most difficult? I would enter the receipt for 485.00 and check off the invoice for 500.00. When the program asks me what I want to do with the underpayment I would select write-off and enter the "Paypal Fees" account to post it to. We get several sales coming in at one lump. Recording the gross invoice by customer at the time of sale means we have initially recorded the sale into the PP account. When the bank transfer actually happens I use the Make Deposits to move the gross sale and record the fees to get the correct net amount into the bank account. It keeps our records in synch with how PP displays the history. In QuickBooks the user can set up more than one Accounts Receivable account. If I wanted to track how much was due from sales made using PayPay I would set up a new recivables account called called Accounts Receivable - PayPal. When recording the invoice I would simply indicate that the receivables account was Accounts Receivable - PayPal rather than my regular receivables account. Now who is suggesting making more work??? I think my method works fine without creating another A/R account. My PP account is setup as a bank account. Haskel knows knows your PP account is setup as a bank. After all I was mentored by the great one. Your method involves slightly more work and is not intuitive. When a sale is make and actual payment is being made by a third party (that requires tracking) then setting up another Receivable Account for that third party tells it like it is. I am not saying your method does not work, I prefer clarity and simplicity, over a kluge which is what your solution is. Did you even take the time to set up my solution in sample data and give it a try? If you did you would be thanking me for my sugestion. - Hide quoted text - - Show quoted text -- Hide quoted text - - Show quoted text - Back to top   Ads Advertising Sponsor Haskel LaPort Guest Posted: Sat Jun 21, 2008 6:29 pm    Post subject: Re: PayPal Fees "Laura" <invalid@sample.invalid> wrote in message news:0wY6k.119559$SV4.48730@bgtnsc04-news.ops.worldnet.att.net... Quote: "Haskel LaPort" <QBFanBoy@gmail.com> wrote in message news:485ba327$0$11625$607ed4bc@cv.net... "Laura" <invalid@sample.invalid> wrote in message news:CyM6k.59618$102.17649@bgtnsc05-news.ops.worldnet.att.net... "Haskel LaPort" <QBFanBoy@gmail.com> wrote in message news:485863a4$0$11617$607ed4bc@cv.net... "Laura" <invalid@sample.invalid> wrote in message news:LAX5k.103981$SV4.76022@bgtnsc04-news.ops.worldnet.att.net... "Sharif" <shariftk@gmail.com> wrote in message news:cdbc5e3b-8540-4f39-9f9e-733fca8bbe8d@a70g2000hsh.googlegroups.com... Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. There are a couple of ways to do it. What I do is to receive payment or do a sales receipt for the entire amount of the invoice. Put the $ into undeposited funds. Then use the Make deposit screen to move the customers payment to the bank account. On the next line enter a negative number for the $15 charged by PP. In the "From account" column enter the expense account you want to post the PP fees to. The net amount will be the amount of money you actually received in your bank. If there are a couple of ways to do it why do you choose the most difficult? I would enter the receipt for 485.00 and check off the invoice for 500.00. When the program asks me what I want to do with the underpayment I would select write-off and enter the "Paypal Fees" account to post it to. We get several sales coming in at one lump. Recording the gross invoice by customer at the time of sale means we have initially recorded the sale into the PP account. When the bank transfer actually happens I use the Make Deposits to move the gross sale and record the fees to get the correct net amount into the bank account. It keeps our records in synch with how PP displays the history. In QuickBooks the user can set up more than one Accounts Receivable account. If I wanted to track how much was due from sales made using PayPay I would set up a new recivables account called called Accounts Receivable - PayPal. When recording the invoice I would simply indicate that the receivables account was Accounts Receivable - PayPal rather than my regular receivables account. Now who is suggesting making more work??? I think my method works fine without creating another A/R account. My PP account is setup as a bank account. Haskel knows knows your PP account is setup as a bank. After all I was mentored by the great one. Your method involves slightly more work and is not intuitive. When a sale is make and actual payment is being made by a third party (that requires tracking) then setting up another Receivable Account for that third party tells it like it is. I am not saying your method does not work, I prefer clarity and simplicity, over a kluge which is what your solution is. Did you even take the time to set up my solution in sample data and give it a try? If you did you would be thanking me for my sugestion. > Back to top   Ads Advertising Sponsor Haskel LaPort Guest Posted: Sat Jun 21, 2008 7:42 pm    Post subject: Re: PayPal Fees "QBConsultant" <QBConsultant@gmail.com> wrote in message news:619f106d-53bf-490c-b13a-14a3c7f68a12@c65g2000hsa.googlegroups.com... I can see where both methods work--so use which ever one works for you. But, for the sake of friendly discussion--if the customer pays immediately with Paypal, it isn't really a receivable. It sits in the paypal account (like another bank account) until you transfer the $$ to your checking account. In the spirt of friendly discussion, until Paypal credits your Paypal Account the monies due can still be considered a receivable. When notified by PayPay that your account has been credited the receipt can be recorded (less the fee) reducing the receivable and increasing a Paypal Bank Account Balance. A bank transfer can be recorded when any funds are transfered from the Paypal account to your checking account. Michelle L. Long, CPA, MBA Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business http://www.SuccessfulQuickBooksConsulting.com http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-Starting/dp/1434810690 On Jun 21, 8:29 am, "Haskel LaPort" <QBFan...@gmail.com> wrote: Quote: "Laura" <inva...@sample.invalid> wrote in message news:0wY6k.119559$SV4.48730@bgtnsc04-news.ops.worldnet.att.net... "Haskel LaPort" <QBFan...@gmail.com> wrote in message news:485ba327$0$11625$607ed4bc@cv.net... "Laura" <inva...@sample.invalid> wrote in message news:CyM6k.59618$102.17649@bgtnsc05-news.ops.worldnet.att.net... "Haskel LaPort" <QBFan...@gmail.com> wrote in message news:485863a4$0$11617$607ed4bc@cv.net... "Laura" <inva...@sample.invalid> wrote in message news:LAX5k.103981$SV4.76022@bgtnsc04-news.ops.worldnet.att.net... "Sharif" <shari...@gmail.com> wrote in message news:cdbc5e3b-8540-4f39-9f9e-733fca8bbe8d@a70g2000hsh.googlegroups.com... Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. There are a couple of ways to do it. What I do is to receive payment or do a sales receipt for the entire amount of the invoice. Put the $ into undeposited funds. Then use the Make deposit screen to move the customers payment to the bank account. On the next line enter a negative number for the $15 charged by PP. In the "From account" column enter the expense account you want to post the PP fees to. The net amount will be the amount of money you actually received in your bank. If there are a couple of ways to do it why do you choose the most difficult? I would enter the receipt for 485.00 and check off the invoice for 500.00. When the program asks me what I want to do with the underpayment I would select write-off and enter the "Paypal Fees" account to post it to. We get several sales coming in at one lump. Recording the gross invoice by customer at the time of sale means we have initially recorded the sale into the PP account. When the bank transfer actually happens I use the Make Deposits to move the gross sale and record the fees to get the correct net amount into the bank account. It keeps our records in synch with how PP displays the history. In QuickBooks the user can set up more than one Accounts Receivable account. If I wanted to track how much was due from sales made using PayPay I would set up a new recivables account called called Accounts Receivable - PayPal. When recording the invoice I would simply indicate that the receivables account was Accounts Receivable - PayPal rather than my regular receivables account. Now who is suggesting making more work??? I think my method works fine without creating another A/R account. My PP account is setup as a bank account. Haskel knows knows your PP account is setup as a bank. After all I was mentored by the great one. Your method involves slightly more work and is not intuitive. When a sale is make and actual payment is being made by a third party (that requires tracking) then setting up another Receivable Account for that third party tells it like it is. I am not saying your method does not work, I prefer clarity and simplicity, over a kluge which is what your solution is. Did you even take the time to set up my solution in sample data and give it a try? If you did you would be thanking me for my sugestion. - Hide quoted text - - Show quoted text -- Hide quoted text - - Show quoted text - Back to top   Ads Advertising Sponsor aps Guest Posted: Wed Jul 02, 2008 11:00 am    Post subject: Re: PayPal Fees "Haskel LaPort" <QBFanBoy@gmail.com> wrote: Quote: "QBConsultant" <QBConsultant@gmail.com> wrote in message news:619f106d-53bf-490c-b13a-14a3c7f68a12@c65g2000hsa.googlegroups.com... I can see where both methods work--so use which ever one works for you. But, for the sake of friendly discussion--if the customer pays immediately with Paypal, it isn't really a receivable. It sits in the paypal account (like another bank account) until you transfer the $$ to your checking account. In the spirt of friendly discussion, until Paypal credits your Paypal Account the monies due can still be considered a receivable. When notified by PayPay that your account has been credited the receipt can be recorded (less the fee) reducing the receivable and increasing a Paypal Bank Account Balance. A bank transfer can be recorded when any funds are transfered from the Paypal account to your checking account. Michelle L. Long, CPA, MBA Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business http://www.SuccessfulQuickBooksConsulting.com http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-Starting/dp/1434810690 On Jun 21, 8:29 am, "Haskel LaPort" <QBFan...@gmail.com> wrote: "Laura" <inva...@sample.invalid> wrote in message news:0wY6k.119559$SV4.48730@bgtnsc04-news.ops.worldnet.att.net... "Haskel LaPort" <QBFan...@gmail.com> wrote in message news:485ba327$0$11625$607ed4bc@cv.net... "Laura" <inva...@sample.invalid> wrote in message news:CyM6k.59618$102.17649@bgtnsc05-news.ops.worldnet.att.net... "Haskel LaPort" <QBFan...@gmail.com> wrote in message news:485863a4$0$11617$607ed4bc@cv.net... "Laura" <inva...@sample.invalid> wrote in message news:LAX5k.103981$SV4.76022@bgtnsc04-news.ops.worldnet.att.net... "Sharif" <shari...@gmail.com> wrote in message news:cdbc5e3b-8540-4f39-9f9e-733fca8bbe8d@a70g2000hsh.googlegroups.com... Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. There are a couple of ways to do it. What I do is to receive payment or do a sales receipt for the entire amount of the invoice. Put the $ into undeposited funds. Then use the Make deposit screen to move the customers payment to the bank account. On the next line enter a negative number for the $15 charged by PP. In the "From account" column enter the expense account you want to post the PP fees to. The net amount will be the amount of money you actually received in your bank. If there are a couple of ways to do it why do you choose the most difficult? I would enter the receipt for 485.00 and check off the invoice for 500.00. When the program asks me what I want to do with the underpayment I would select write-off and enter the "Paypal Fees" account to post it to. We get several sales coming in at one lump. Recording the gross invoice by customer at the time of sale means we have initially recorded the sale into the PP account. When the bank transfer actually happens I use the Make Deposits to move the gross sale and record the fees to get the correct net amount into the bank account. It keeps our records in synch with how PP displays the history. In QuickBooks the user can set up more than one Accounts Receivable account. If I wanted to track how much was due from sales made using PayPay I would set up a new recivables account called called Accounts Receivable - PayPal. When recording the invoice I would simply indicate that the receivables account was Accounts Receivable - PayPal rather than my regular receivables account. Now who is suggesting making more work??? I think my method works fine without creating another A/R account. My PP account is setup as a bank account. Haskel knows knows your PP account is setup as a bank. After all I was mentored by the great one. Your method involves slightly more work and is not intuitive. When a sale is make and actual payment is being made by a third party (that requires tracking) then setting up another Receivable Account for that third party tells it like it is. I am not saying your method does not work, I prefer clarity and simplicity, over a kluge which is what your solution is. Did you even take the time to set up my solution in sample data and give it a try? If you did you would be thanking me for my sugestion. - Hide quoted text - - Show quoted text -- Hide quoted text - - Show quoted text - The PayPal account should be handled as a TDA because if the money is left there it pays interest just like a savings account. It is NOT a DDA...IMO. --- APS Back to top   Ads Advertising Sponsor Haskel LaPort Guest Posted: Wed Jul 02, 2008 5:36 pm    Post subject: Re: PayPal Fees "aps" wrote in message news:3Iadnewl37Lvs_bVnZ2dnUVZ8h-dnZ2d@giganews.com... Quote: "Haskel LaPort" <QBFanBoy@gmail.com> wrote: "QBConsultant" <QBConsultant@gmail.com> wrote in message news:619f106d-53bf-490c-b13a-14a3c7f68a12@c65g2000hsa.googlegroups.com... I can see where both methods work--so use which ever one works for you. But, for the sake of friendly discussion--if the customer pays immediately with Paypal, it isn't really a receivable. It sits in the paypal account (like another bank account) until you transfer the $$ to your checking account. In the spirt of friendly discussion, until Paypal credits your Paypal Account the monies due can still be considered a receivable. When notified by PayPay that your account has been credited the receipt can be recorded (less the fee) reducing the receivable and increasing a Paypal Bank Account Balance. A bank transfer can be recorded when any funds are transfered from the Paypal account to your checking account. Michelle L. Long, CPA, MBA Author of: Successful QuickBooks Consulting: The Complete Guide to Starting and Growing a QuickBooks Consulting Business http://www.SuccessfulQuickBooksConsulting.com http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-Starting/dp/1434810690 On Jun 21, 8:29 am, "Haskel LaPort" <QBFan...@gmail.com> wrote: "Laura" <inva...@sample.invalid> wrote in message news:0wY6k.119559$SV4.48730@bgtnsc04-news.ops.worldnet.att.net... "Haskel LaPort" <QBFan...@gmail.com> wrote in message news:485ba327$0$11625$607ed4bc@cv.net... "Laura" <inva...@sample.invalid> wrote in message news:CyM6k.59618$102.17649@bgtnsc05-news.ops.worldnet.att.net... "Haskel LaPort" <QBFan...@gmail.com> wrote in message news:485863a4$0$11617$607ed4bc@cv.net... "Laura" <inva...@sample.invalid> wrote in message news:LAX5k.103981$SV4.76022@bgtnsc04-news.ops.worldnet.att.net... "Sharif" <shari...@gmail.com> wrote in message news:cdbc5e3b-8540-4f39-9f9e-733fca8bbe8d@a70g2000hsh.googlegroups.com... Hi All, I recently invoiced a customer (for example's purposes) $500.00, which was paid for via PayPal. PayPal charged me about $15.00 for the transaction so I only got $485.00 of this invoice. How can I enter this in QB? Should I adjust the invoice? I am really confused as I'd like to track the PayPal fees associated with the Invoice. There are a couple of ways to do it. What I do is to receive payment or do a sales receipt for the entire amount of the invoice. Put the $ into undeposited funds. Then use the Make deposit screen to move the customers payment to the bank account. On the next line enter a negative number for the $15 charged by PP. In the "From account" column enter the expense account you want to post the PP fees to. The net amount will be the amount of money you actually received in your bank. If there are a couple of ways to do it why do you choose the most difficult? I would enter the receipt for 485.00 and check off the invoice for 500.00. When the program asks me what I want to do with the underpayment I would select write-off and enter the "Paypal Fees" account to post it to. We get several sales coming in at one lump. Recording the gross invoice by customer at the time of sale means we have initially recorded the sale into the PP account. When the bank transfer actually happens I use the Make Deposits to move the gross sale and record the fees to get the correct net amount into the bank account. It keeps our records in synch with how PP displays the history. In QuickBooks the user can set up more than one Accounts Receivable account. If I wanted to track how much was due from sales made using PayPay I would set up a new recivables account called called Accounts Receivable - PayPal. When recording the invoice I would simply indicate that the receivables account was Accounts Receivable - PayPal rather than my regular receivables account. Now who is suggesting making more work??? I think my method works fine without creating another A/R account. My PP account is setup as a bank account. Haskel knows knows your PP account is setup as a bank. After all I was mentored by the great one. Your method involves slightly more work and is not intuitive. When a sale is make and actual payment is being made by a third party (that requires tracking) then setting up another Receivable Account for that third party tells it like it is. I am not saying your method does not work, I prefer clarity and simplicity, over a kluge which is what your solution is. Did you even take the time to set up my solution in sample data and give it a try? If you did you would be thanking me for my sugestion. - Hide quoted text - - Show quoted text -- Hide quoted text - - Show quoted text - The PayPal account should be handled as a TDA because if the money is left there it pays interest just like a savings account. It is NOT a DDA...IMO. --- APS TKS U R MY BFF. > Back to top   Ads Advertising Sponsor Laura Guest Posted: Wed Jul 02, 2008 5:57 pm    Post subject: Re: PayPal Fees "aps" wrote in message news:3Iadnewl37Lvs_bVnZ2dnUVZ8h-dnZ2d@giganews.com... Quote: The PayPal account should be handled as a TDA because if the money is left there it pays interest just like a savings account. It is NOT a DDA...IMO. --- APS Not in all cases. You have to sign up aka elect to convert your PP account into a savings/money market account to earn interest. My clients have not elected that option and do not leave money in their account. We access the account several times a week and transfer ALL monies received from their customers to their regular checking account. In QB we handle the account like a bank account and show the transfers in and out that minic the actual activity shown on the PP account summary. TDA? DDA? what are they? Back to top   Ads Advertising Sponsor aps Guest Posted: Thu Jul 03, 2008 11:01 am    Post subject: Re: PayPal Fees "Laura" <invalid@sample.invalid> wrote: Quote: "aps" wrote in message news:3Iadnewl37Lvs_bVnZ2dnUVZ8h-dnZ2d@giganews.com... The PayPal account should be handled as a TDA because if the money is left there it pays interest just like a savings account. It is NOT a DDA...IMO. --- APS Not in all cases. You have to sign up aka elect to convert your PP account into a savings/money market account to earn interest. My clients have not elected that option and do not leave money in their account. We access the account several times a week and transfer ALL monies received from their customers to their regular checking account. In QB we handle the account like a bank account and show the transfers in and out that minic the actual activity shown on the PP account summary. TDA? DDA? what are they? DDA = Demand Deposit Account TDA = Time Deposit Account DDA is account money is drawn on by check. TDA is account money is parked in or moved to another account, i.e. a checking account. 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