Merchant Accounts (Freelancer.co.uk)

Accounting
1

Hello,

I am new at QuickFile, and I believe I have not a standard case here. Just want to verify if I am doing everything correctly.
I am develoepr - freelancer, and do some job on freelancer’s websites like freelancer.co.uk, that is where I receive a payments through in EUR. Also Freelancer.co.uk charges for some commissions, so I receive actually less than invoice.
So here what I have done in my QF Accounts.

Setup:
I have setup CustomerA as Customer, and raised an Invoice.
I have setup Freelancer.co.uk as a Bank Account with currency EUR.
I have setup Freelancer.co.uk as Supplier to write down the the fees.
I have setup 2 Bank Accounts for PayPal one EUR and GBP.

Process:

  1. I issue an Invoice for CustomerA.
  2. Create an transaction for FREELANCER bank account in EUR.
  3. Tag transaction against CustomerA Invoice.
  4. Create an Purchase for Freelancer account, where I pay the fee as Sales Commission.
  5. Create a Payment against Sales Commission Purchase from Freelancer Bank Account.
  6. Create an transfer transaction from Freelancer Bank Account to PayPal EUR account.
  7. Create a Transfer Transaction from PayPal EUR To PayPal GBP.

Does it look correct for you ?
By the way I have setup FREELANCER as Current Bank Account and now can not changed into Merchant, will this make any sense in future ?

Thank you.
Best Regards,
Domas

2

Question: do Freelancer.co.uk ever hold your money?

When you carry out work for somebody using this site does the client pay you directly to your PayPal account? Or are Freelancer.co.uk providing some sort of escrow service and then transferring the money to your PayPal account when the work is complete?

3

Hello Glen, thank you for reply.
Yes, they hold my money. Customer payments first of all are made through the web-site, and later I can withdraw my balance to paypal.

Best Regards,
Domas.

4

So in general anybody holding your money should have a corresponding bank account in Quick File. When money moves from one entity to another it would be treated as a bank transfer (i.e. Freelancer.co.uk --> PayPal). If fees are taken along the way then these are generally logged as payments to a supplier.

So on that basis your sequence looks correct!

5

I also updated the freelancer.co.uk account to a merchant account.

6

Thank you a lot Glenn for help.
Very nice software you have provided.

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