Morning All, so it’s become apparent recently whilst reconciling back to bank that we might be slightly over in relation to what appears to be paypal related entries.
We obviously receive 2 entries to tag off 1 from the main current account feed then a replica within the paypal merchant account statement feed. Should we be tagging off from the main current account feed and deleting the entry from the paypal merchant account feed or vice versa as im sure if we did it a certain way it wld then transfer the amount onto client account as a prepayment. Your assistance would be greatly appreciated.
Hi Steve sorry i shld have mentioned these are purchases we’ve made using paypal as a form of payment. So these amounts are appearing as deductions on the main account as well as in the paypal account. I usually create an invoice for them and then tag the payment off using either the main account or the paypal account entry but unsure which i shld be tagging and which i shld be deleting if you get me.
You are creating the invoices and tagging with PayPal as this was how it was paid and you are receiving the money from the PayPal account to your main bank
The same principle applies as for incoming money. The “payment to a supplier” happens when you make the PayPal payment, so the PayPal money out is tagged to the purchase invoice and the current account money out is tagged as a transfer to the PayPal account.
I run a monthly paypal report to give me all the transactions and the fees, then raise an invoice for the last day of the month reference paypal sales and second line less fees.
the banking is tagged as a unallocated amount to the paypal account and i should only be left with the last couple of days amounts that are yet to hit the bank .
