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How do you record PayPal fees?

kashburnkashburn Member
edited January 2019 in
For example, if I send an invoice to my client for $100 and he pays by PayPal, it shows that he paid $100 but only $95 is deposited into my PayPal account. How do I record the fee without it appearing that the client shorted the invoice?

Comments

  • GeoffGGeoffG SuperUser ✭✭✭✭✭
    edited January 2019
    I would show the deposit as a split transaction with $100 going to your income account and $5 going to "Paypal Fee" with the net deposit $95.  Just be sure to reverse the sign on the fee.
    user since '92 | Quicken Windows Premier - Subscription | Windows 10 Pro version 1909
  • kashburnkashburn Member
    edited July 2016
    GeoffG said:

    I would show the deposit as a split transaction with $100 going to your income account and $5 going to "Paypal Fee" with the net deposit $95.  Just be sure to reverse the sign on the fee.

    I'm new to this so I need just a little more clarification. When I get paid I should record it as a deposit rather than a customer payment? In customer payment I don't see how to split the transaction. Thanks for your help.
  • GeoffGGeoffG SuperUser ✭✭✭✭✭
    edited December 2016
    GeoffG said:

    I would show the deposit as a split transaction with $100 going to your income account and $5 going to "Paypal Fee" with the net deposit $95.  Just be sure to reverse the sign on the fee.

    No problem... when you receive payment for deposit, you'll enter Deposit in the "Num" field, then payee and amount ($95) in the Deposit field (tab to each field).  When you get to "Category" press Alt-S.  This brings up the Split transaction screen.  Select the Income category you want and amount $100.  Then enter the expense category (PayPal Fees as an example) and enter -$5.  Since the deposit was for $95 the amounts should agree.
    user since '92 | Quicken Windows Premier - Subscription | Windows 10 Pro version 1909
  • kashburnkashburn Member
    edited July 2016
    GeoffG said:

    I would show the deposit as a split transaction with $100 going to your income account and $5 going to "Paypal Fee" with the net deposit $95.  Just be sure to reverse the sign on the fee.

    Thank you! Is there a place that has tutorials or scenarios to help learn the right way to set up the files? The community is great as long as you know what you are looking for.
  • GeoffGGeoffG SuperUser ✭✭✭✭✭
    edited December 2016
    GeoffG said:

    I would show the deposit as a split transaction with $100 going to your income account and $5 going to "Paypal Fee" with the net deposit $95.  Just be sure to reverse the sign on the fee.

    Other than Quicken Help, you can try a bookstore or your library.
    user since '92 | Quicken Windows Premier - Subscription | Windows 10 Pro version 1909
  • kashburnkashburn Member
    edited July 2016
    GeoffG said:

    I would show the deposit as a split transaction with $100 going to your income account and $5 going to "Paypal Fee" with the net deposit $95.  Just be sure to reverse the sign on the fee.

    Thank you so much for your help!
  • leskoonkleskoonk Member ✭✭✭
    edited February 2017
    I have come over many years to be shy of using split transactions where possible.  It is a matter of personal taste and preference - I find they can be confusing, and also risk being handled incorrectly.

    So, I would encode a separate trasaction to pay the fees - a deposit of $100, and then a "payment" of $5 for the fees.

    There are often more than one way to do something.  Like Occam's Razor, I prefer the simplest - but I confess it's perhaps a matter of opinion as to what is simpler.
  • kashburnkashburn Member
    edited July 2016
    leskoonk said:

    I have come over many years to be shy of using split transactions where possible.  It is a matter of personal taste and preference - I find they can be confusing, and also risk being handled incorrectly.

    So, I would encode a separate trasaction to pay the fees - a deposit of $100, and then a "payment" of $5 for the fees.

    There are often more than one way to do something.  Like Occam's Razor, I prefer the simplest - but I confess it's perhaps a matter of opinion as to what is simpler.

    I see there are many ways to do things in Quicken. It makes it very confusing when you are trying to learn.

    Here is what I am doing: (btw I'm using Quicken 2009 Home and Business)
    1. I have a customer invoices acct
    2. I create an invoice for $100 with 2 line items ($75 software sale, $25 consulting)
    3. The customer pays the invoice via PayPal (submits $100 to my PayPal acct)
    4. PayPal takes $5 as a fee (my invoice also includes sales tax for the software)
    5. Once the money is in my PayPal acct, I go to the Business tab in Quicken, select Create New and pick Customer Payment.
    6. From here it only allows me to pick the customer (and find the corresponding invoice), which acct to deposit the payment to (I set up a savings type account for PayPal) and the amount)
    7. In order for me to adjust for the fee, I go back to the invoice and add a line item for PayPal fee and put in -$5.

    So, first of all, is this the correct process? If so, when I look at my customer Invoices register, the actual total shown is reduced by the PayPal fee so it appears lower than it actually is.

    Also, maybe this should be a separate post but along the same lines, say I get a 50% deposit before the work is started, therefore, two payments. When I entered these two payments using the steps above it splits the PayPal fees across both, even though one payment was PayPal and one was a check.

    Any help would be greatly appreciated!
  • Quicken Generic UserQuicken Generic User Member ✭✭✭✭
    edited July 2016
    leskoonk said:

    I have come over many years to be shy of using split transactions where possible.  It is a matter of personal taste and preference - I find they can be confusing, and also risk being handled incorrectly.

    So, I would encode a separate trasaction to pay the fees - a deposit of $100, and then a "payment" of $5 for the fees.

    There are often more than one way to do something.  Like Occam's Razor, I prefer the simplest - but I confess it's perhaps a matter of opinion as to what is simpler.

    This is the same problem I have.  Have not found a solution.
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