Dealing with fee's taken at source

Accounting
1

Hello,

We have recently just signed up with Paypal Here for taking chip and pin payments. Previosuly, I create a sales order for say £200 and pay in a checque or cash for £200 and then as soon as our Barclays bank import updates the bank account over night, I link the £200 paid in with the sale and job done.

With Paypal Here, they charge a fee of 2.75% which is taken by Paypal from the amount processed i.e instantly So on my Paypal account (lets presume the balance in £0) it will show one line of £200 received and then under that a second line debiting the fee of £5.50 so instantly my balance available to download to Barclays is £194.50

So when I download £194.50 from Paypal to Barclays and Quickfile picks it up that night, I have a sale of £200 but an amount of £194.50

My plan was to enter the sale for £200 but then add a second line to the sale showing a credit charge of -£5.50 so the total for the sale was £194.50 and it would then balance when they reconcile.

Would that be the best way to do it? Why Paypal (for business) Cant just send you a bill at the end of the month like the Banks do for your banking charges I dont know. Greedy and want it instantly I presume.

Any advice on the best way to deal with the fee and the associated issue that the downloaded payment then doesnt reconcile fully with the sale would be appreciated.

Thanks
Rich

2

You would deal with the fee as you would a normal PayPal transaction - for every 1 transaction, you create 3.

Take a look at this guide:
http://help.quickfile.co.uk/main/1/how_do_i_handle_payments_from_an_online_payment_provider_like_paypal_.htm?searchTxt=paypal&criteria=

Also worth having a look at this topic too:

3

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