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MikeB70
October 7, 2021
Solved

Assign PayPal fees to Cost of Sales

  • October 7, 2021
  • 1 reply
  • 0 views

So Inutit finally seem to have resolved the issue with customer payments via PayPal being resolved correctly in the Banking screen. However, I want to have PayPal fees categorised as a Cost of Sale, as that's essentially what it is - no sale = no PayPal fee. The problem is, that it appears that in the PayPal App settings, QuickBooks only allows you to assign an Expense account to Paypal fees; has anyone got a better solution to this than having to create a journal entry every month to move the fees to the correct account?

 

Thanks

Best answer by EmmaM

Hello Mike, Most users categorise the fee as a business expense. Yes, you could move them by journal entry or remove the app and manually enter the transaction. We do welcome other QB user's comments on this thread.

1 reply

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EmmaMAnswer
October 7, 2021

Hello Mike, Most users categorise the fee as a business expense. Yes, you could move them by journal entry or remove the app and manually enter the transaction. We do welcome other QB user's comments on this thread.

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MikeB70Author
October 7, 2021

Thanks for the reply.

Most of the people I speak to categorise merchant fees as cost of sales, because the charge can be directly linked to a sale. It's also strange because we also use GoCardless to take customer payments and the settings for that allows you to choose a cost of sales account for the fees but you can't do the same with PayPal.

This should really be added as an option, but I suppose for now we'll need to remember to create journals each month.

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