PayPay Fees

[asht]

Good afternoon.

I have started selling goods via eBay with PayPal as a payment method but unsure how to process PayPal fees.

I have already created a merchant account in QuickFile and income will be tagged to it. I am assuming I raise a purchase for the PayPal fees and tag it from the PayPal account and the balance can be paid into the current account. Is this correct?

Also, do I raise a purchase for every individual PayPal transaction (how PayPal take their commission) or can I just create a total per month?

Thanks

Ash

[QFBeth]

you may find this useful Handling payments from merchant accounts

[asht]

unfortunately this does not answer the question I raised.

My query is around processing PayPal fees not income.

[ian_roberts]

@asht

unfortunately this does not answer the question I raised

It’s under the “other considerations” section at the end:

If your gross sales don’t exactly match the amounts received due to your provider debiting their fees from the balance and paying you the NET amount (As mentioned in point 11). Then you will need to enter an additional debit on your virtual payment service provider account and tag that debit to a supplier invoice covering the related charge.

So what you end up with is a payment in to your PayPal merchant account for the full invoice amount before the PayPal fees are deducted, a payment out for the fees tagged to a purchase, and if/when you withdraw the net balance to your current account that is just tagged as a bank transfer.

[asht]

Hi Ian

Sorry what I meant was, could I do a weekly/monthly calculation for the fees taken by PayPal or would it need to be individual.

[FolkLondon]

Whichever is easiest for you.