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PayPal fee HELP

Hello, some help please, I send invoices out and allow customers to pay via PayPal, however when they pay the invoice amount PayPal charges and the money I receive is alway less so when I go to to invoice and select paid, it’s taking the invoice amount and not the actual amount (minus fees).

How do I account for the PayPal fee, do I alter the invoice, add a line on the invoice to take into account the PayPal fee or just enter a transaction separately for the PayPal fee, and there is only an option for “bank Charges), what would a PayPal fee fall under

Regards

Hi @LittleLargeGiant0107

You would use a holding account for this and account for the fee separate from the invoice.

The following guide should hopefully help: Accounting for income from a payment service provider

I report the total PP fees once a month rather than account for them individually.

We are not VAT registered, I don’t know if there is a difference if you are

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