Hi, i have recieved a full payment for an account, the client used the “Pay Online” button on his invoice and paid by PayPal, the invoice shows settled but of course when i go to PayPal there’s a deduction of £5.07 how would i show this against this invoice?
When you receive a payment from PayPal, you should in effect have 3 transactions for every 1.
In this screenshot, I have the 3 transactions for a Stripe payment, but the concept is the same.
+£5.00 - This would be tagged to the invoice
-£0.32 - This would be your fee, tagged to a purchase for Stripe in my case (PayPal in yours)
-£4.68 - This is a transfer to the main bank account which is what I actually see of the money the client paid.
I’m not 100% sure, but the PayPal feed may already import the fees, which in that case just tag to a purchase for PayPal (or you can tag straight to Bank Charges, but I prefer setting up a new purchase)
Hope this helps
Thanks for the reply but i dont have PayPal set up as a bank account…etc, so i get paid in paypal and then update the client as paid (i dont get paid by paypal too often), on this occassion the client used the button on the invoice page to access paypal and pay so QuickFile automatically updated the clients billing.
My question is, when i draw the payment from paypal to my bank account it wont be the full amount shown on the invoice, it will be £5.07 less, how do i account for or show that?
I would set PayPal up as a bank account and follow the example above.
The invoice would still be for the full amount that the client has paid, but you would need to account for the fee.
So, set up the “bank account”, and account for 3 transactions:
- Money in (for the full invoice amount)
- Money out (PayPal Fee - £5.07)
- Money out (full invoice amount minus the £5.07 fee, tagged as a transfer to your main bank account).
It just makes life a bit easier to account for it that way!
If you need any more help, feel free to ask
Ok i’ve done that and deleted the original transaction that the client created by clicking the “Pay Online” button, how do i tag the fee? i know i can tag the bank transfer when it shows up
Personally, I have a supplier set up for PayPal and create a new purchase for it, so I know where I am and can add a meaningful description for each payment.
Category would be ‘Bank Charges’
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