Correct code for seller fees

Hello,
I have fees from paypal and ebay.

  1. How do i correctly input these, As my council are saying bank charges are not going to be counted as an expense alongside hosting.
  2. I also heard from some forum, that bank charges are only accepted up to £500, i am hitting over £400 already.
  3. I have changed hosting to advertisement, What is the correct code I should use for the Ebay final Fees, and Paypal?
    4.Isit possible to download paypal fees in just GBP? As i now sell on ebay.com, when i download CSV from paypal it contains USD and GBP, but i cannot find option to just download GBP.
    5.
    Here i have a fee reversal, I am not putting the USD fees into the account, as when i convert the figure, as i only sell stuff in usd right now, when i convert the USD to GBP, this is my final profit. But if a fee is reversed is this a drawing or a sale?
    6.If a transaction is on hold, and i tag this as payment to supplier - dispute, then if it gets returned, i put refund from supplier?

I am converting USD to GBP, then i enter it on my Quickfile as general sales.

Thanks

Hi @Scott_Warnes

I’ll try and help you with your points. There are quite a few details posts on the forums in regards to recording seller fees for various online market places.

  1. There is more information on these in this topic and this one.

  2. While I’m not able to comment on the bank charges query in point 2 (I’m not an accountant), it may be best to either ask your own accountant, or even ask the forum you heard it from for clarification.

  3. What did you have tagged as hosting originally? eBay fees should be tagged as per point 1. PayPal fees are transaction fees which should be dealt with as a standard merchant account set up. There’s more information on this in our knowledge base here

  4. I don’t have access to an account with this set up to try this, but it may be worth contacting PayPal directly. Alternatively, another user of QuickFile may be able to help. Accounting for them as USD would still work, but you would need an exchange rate (or a GBP equivalent value) to record them on QuickFile.

  5. Reversal fees from a refund for example, would be a refund against their originally charged fee.

  6. If a transaction is withheld, it can be deleted as it doesn’t affect your overall accounts. There’s more information on this here.

Hope that helps!

Hey,
So,

  1. I should delete all entry for disputes.As a new entry will come if it is actually refunded? because if the payment is finalized he will get refund and i would of lost the money.
  2. I was using bank charges but apparently HMRC dont accept bank charges over £500.
    3.Hosting was tagged as hosting. but its not acceptable according to the council as its accounted as entertainment.
    4.How would i refund to original charged fee, if its in USD and i have converted the amount to GBP. I am not logging USD paypal fees?

What code do i move bank charges into? Would they be sale commission instead?

Thanks again.

The problem is, if i have sales on the UK Ebay and USA ebay, there is two types of fees, one in USD one in GBP.
Its impossible to split the log by hand if you have 100s+ of transactions.

The £500 limit on “bank charges” is only if you’re using simplified cash basis accounting for your tax return. If you’re using traditional accruals based accounting then you can claim more.

[quote=“Scott_Warnes, post:3, topic:13702”]

  1. I should delete all entry for disputes.As a new entry will come if it is actually refunded? because if the payment is finalized he will get refund and i would of lost the money.[/quote]
    If the money is held back then this could be due to one of several reasons. If it’s because of a check (e.g. PayPal doing it’s usual fraud checks), then another transaction will appear for the money coming into your account. Typically you’d have three transactions - 2x money in, 1x money out. So it should balance in the end.
    If however it’s held because of a dispute, then you would tag that as a refund against the relevant sales invoices at the time. You could delete the transaction, and then create a credit note which in turn would create the relevant tagged transaction for you.

See @ian_roberts’ post above, or check with your accountant (I’m not one, and as far as I’m aware Ian isn’t one either)

If it’s web hosting, then it’s hosting. By council are you referring to the local authority? Things like entertainment aren’t classed as valid business expenses, although you would need to check with an accountant who could advise you on this further. If you don’t have one, you can send a query to a panel of accountants from your QuickFile dashboard.

If the amount is lower than the original fee, a credit note would work fine. If it’s higher, you may be able to create a negative value purchase invoice (I will need to confirm this).

Hope that helps

I’m not, I was just quoting from the government website. On another page they say that cash basis might not suit you if you “want to claim bank charges of more than £500 as an expense”, which is a pretty clear indication that you can claim that normally.

Thanks guys.
If I just delete any held disputes and if a dispute is returned I will mark it as general sales?

If the money ends up in your bank account at the end of it, you would just treat it like another sale. If 4000 General Sales is the code you normally use, then that should be fine :slight_smile: