Merchant account

[BalPhull]

Please note that you’ve have answered this query before (QFSteve Nov22)

Hi, I’ve a customer who pays for their invoice through a merchant we use called iZettle/PayPal. These, guys take a commission dependent of size of transaction. The issue I have is the sales invoice to the customer is £500, I’ll receive £475 (example) into the bank for that invoice. How do I tag the credit to the invoice as the amounts differ?

I’ve created a PayPal merchant account.

I’d appreciate it if you could send me instructions, including step by step screenshots of which “selections” I should be making. The credit has already hit the bank.

Thanks.

[ian_roberts]

The basic pattern is that you mark the sales invoice as paid in full (£500) into the merchant account, the “credit [that] has already hit the bank” as a bank transfer from the merchant account into your current account. This leaves a balance on the merchant account equal to the fee you were charged, which you can then record as a purchase with something like “PayPal fees” as the supplier.

https://support.quickfile.co.uk/t/accounting-for-income-from-a-payment-service-provider/8870