Question about Intuit QuickBooks Pro 2007 Full Version (299116)
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.
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.
Posted on Nov 16, 2008
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Posted on Jan 02, 2017
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Here's the real info PayPal does not advertise, market or even wants to tell you about paying with a credit card.
With PayPal's Website Payments Standard, PayPal does say that you don't have to have a PayPal Account to make a purchase. And they provide an option for you as a Premier Account owner or Business Account owner to configure your account to allow customers to pay with a credit card and/or open/use your PayPal Account. This information is valid.
The small bit of very important information not told to you is the following. Lets say you have returning customers or have clients that pay you for services on a regular basis. After your customer or client pays you 3 to 4 times using the same credit card, PayPal will interrupt the transactions and require the customer or client to open a PayPal Account or use a totally different credit card.
People need to understand that PayPal's mission it to sign up new business or accounts. It's just that simple. And although Website Payments Standard is great concept becasue you pay only for the services you use, there are limitations. As they say, you get what you pay for.
For folks who really just want their customers or clients to pay with a credit card with no limitations, then the product to use is Website Payments Pro. However, with Pro, there is a monthly fee, security requirements and transaction fees.
Google Checkout can use as an alternative
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