Adjusting for PayPal fees when recording payment received
A. I bill the customer 239.95 on the ProductName account.
b. The customer pays the bill through PayPal.
c. I record that the customer has paid the full 239.95 (an increase to the ProductName account), so the customer's account will be clear, and I mark that money as having been deposited to the PayPal account.
d. PayPal sends me a check for 228.79 (11.16 in fees deducted from the 239.95 they received), and I deposit that 228.79 from the PayPal into the Checking account.
MY PROBLEM: I need to decrease the ProductName account by 11.16 so it shows the true value (to me) of the sale. I can record an 11.16 bill from PayPal and list ProductName on the Expenses tab to keep the ProductName account straight; but then, when it's time to record the bill as paid, I can only choose Checking or Savings as the source of the payment funds, when they've actually come from the PayPal account.
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Re: adjusting for PayPal fees when recording payment...
Actually, you do not want to reduce the product name. When you make the deposit from PayPal, you want it to be for the full amount the customer paid. Then add a second line with a minus amount for the fees, and the account of paypal fees (expense). This way, you split off the fees paid to paypal as an expense, and the bank reconcile matches.
Attempting to reduce the ProductName will only result in tax liability issues, as you have to charge sales tax on the full amount the customer was originally charged.
Using a negative line on the deposit to split the paypal fees off is a much cleaner process, and causes no confussion for the accountants.
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Big companies increasingly stretch invoice payment from 30 days to 90 days or longer. This puts small operations in a bind because their employee salaries, vendor payments, and taxes are due whether the customer pays or not. The solution for many businesses is factoring. Sell your accounts receivable at a discount and get immediately paid. You get the cash flow you require to meet current working expenses without incurring debt.
You perform a service for your customer.You send your invoice to a factoring company.You receive a cash advance on your invoice from the factoring company.The factoring company collects full payment from your customer.The factoring company pays you the rest of your invoice amount, minus a fee. Basically
I've installed Simply accounting loads of times and it is the same issue every time, if you did not subscribe to an annual fee you simply can not re-install simply accounting after the contract has expired.... that is why I suggest ACOMBA they are more expensive per module but you pay once and can install a 1000 times they don't care... if you don't pay the annual fee you just don't get support or updates... (which is fine if you don't use the pay roll module)
I personally find this more fair... (you payed to use the software... OK, but if you don't pay every year your on your own for support and no updates...) and that's OK for some small companies that is only what they need, accounting not pay roll, etc..., but companies like Simply Accounting they want you to buy a contract not the software... they sell the software cheaper but they want money every year...
If you are paying your sales tax by invoice date - the payments will not affect your liablity. ie you owe the whole amount of sales tax as of the date of the invoice. If you are paying sales tax as of the time of payment. You will owe sales tax at the time you receive payment.
Since you are using progress invoicing, the sales tax would be come due at the time of the invoice. If you are just receiving payments, you would receive payments (as you would with any customer, and not invoice until time of completion. You would just need to make sure that your preference for sales tax due date is set to Invoice date, not time of payment.
Hopefully, you already found this answer elsewhere, but just in case you're still wondering:
Customer should be the owner or member. Then, if you've made the payment "billable" as indicated in your question, you can create an invoice to that customer and use the "Add Time/Cost" function to add the billable expense.
If you do not want your statements to reflect any payments, go to the top of your tool bar, click on Edit, go down to "Preferences", find the "Sales and Customers", go to "Company Preferences", and at the bottom you have the option to "Automaticly apply Payments", make sure that is not checked.