Paypal balance mismatch due to overcharging in paypal?

Hi all,

I’m out by £55 on my Paypal balance :confused:
I get paid mostly via Paypal so about 2 months ago I decided to add the Paypal fees ‘on top’.
Trouble is, it’s hard to calculate and most of the time I end up with a couple of quid over.

So for example, lets say a service is £50. After I work out the fees (incorrectly) I may ask for £53.90.
The client pays, Paypal takes its cut and I end up with £51 instead of £50.

Could these extra quids here and there have caused the paypal balance to be £55 at the end of the month, rather than the £0 I expected?

Thanks
jose

This is a real pain, I’d like to know the answer to this!

And while you’re on the subject of PayPal:

For the last month or so, whenever I raise an invoice against a client, and that client then pays via PayPal, it doesn’t get marked off as paid on QF immediately as it does with other payments, and when it does then come through (roughly 24 hours afterwards, I assume due to delay in polling from PP) QF creates a NEW client and lists the payment and invoice under them.

To rectify this I then have to delete the new customer that’s been created automatically, then manually pay up the original invoice so that its registered on the clients account.

Any help with this would be much appreciated!

Lets try this
Invoice raised for 100
customer paid through paypal 100 and charges were 2.70, net remitted to bank 97.30.

You should have paypal account in QF as well as main bank a/c.
Log receipt from invoice £100 by selecting paypal as receiving a/c, go to paypal a/c, enter transactions as follows

  1. Paid out to main bank £97.30
  2. Bank charges (paypal charges) 2.70
    this will make paypal a/c zero

Hi Faraday and thanks for your reply.

Your scenario is not the situation. Please see below:

invoice raised for £100
paypal button on my website is £100 + paypal fees (which I work out in advance)
customer pays £103.70
after paypal charges, I end up with £101.55

Is the correct way to deal with this: creating a new invoice (to nobody?) for the amount equal to the surplus money so I can balance?

Thanks
Jose

If you’re using the feed PayPal will always show the gross amount in the feed plus the charge, so that should NET things off. I’m not sure why the balance is out but PayPal are very verbose with what information they pass through the feed. I would first look to see if you have any refunds, foreign currency receipts, adjustments or anything else other than straight forward GBP sales.

Hi Glenn,

I don’t use the paypal feed. I enter those manually. The issue I have is that I get payments from different countries and it’s hard to understand the paypal payment details where they show fees and currency conversion charges in $. It’s a pain tbh.

But even if I was using the feed, the gross amount would be off because I try to work out the paypal fees + currency conversion charges and almost always they come out different.

(I’m going back to just not adding paypal fees from now on - I’ll just take a hit, but at least everything will tally up nicely).

Not sure what to do with this small mismatch though

PayPal reconciliation is not straight forward without some bookkeeping experience, it’s even more complex when you have foreign currency transactions involved as you can’t have mixed currencies in one bank account. This is a bit of an oddity unique to PayPal. You can always adjust the balance on the PayPal account and post it to currency loss/gains. I’d just check with your accountant first.

Thanks Glenn, much appreciated. I managed to find the issue = something I purchased via paypal was paid whilst there was money in paypal. As I’m not using the paypal feed I missed this.

Jeez that was hard :smile:

Many thanks for all the great advise