How do I record paypal fees on my linked paypal account, when transactions are the total sale amount of which VAT must first be paid (splitting doesn't work)?

You have the option to avoid splitting the fees when recording transactions, Doane. Instead, you can manually input the entry to ensure your financial records are accurate. This method requires meticulous attention to detail to achieve precise accounting records. I'll provide detailed steps below to guide you through the process.

To begin, create a sales receipt and post the transaction as Undeposited Funds. This action temporarily holds the transaction, allowing you to group it with other payments or apply fees before moving it to the bank account. Please refer to the attached screenshot below.

Next, proceed to create a bank deposit to reflect the movement of money into your bank account.

1. Click on the + New button and choose Bank Deposit.

2. In the Account dropdown menu, select the account where the money will be deposited.

3. Check the box next to the transaction you wish to include in the deposit.

4. Scroll to the Add funds to this deposit section below.

5. Input any fees as a separate line item by entering the details of the fee.

6. Specify the payee of the fee in the respective field.

7. Choose Bank Charges from the Account dropdown menu for the type of fee.

8. Enter the fee amount as a negative number. For instance, if the fee was $5, input -$5.

9. Verify the total amount of the deposit after including the bank fee.

10. Click Save and close.

For additional guidance, refer to this helpful article: Record and make bank deposits in QuickBooks Online.

Finally, you will need to match the transactions.

1. Hover over the Transactions menu and select Bank Transactions.
2. Locate the downloaded transactions from PayPal.
3. Click Match ensuring the amounts align correctly.

Furthermore, you can check this article to ensure your records match your bank statement and avoid discrepancies or errors: Reconcile an account in QuickBooks Online.

This detailed method ensures all transactions are aligned and recorded in QuickBooks. If you have additional questions, please don't hesitate to revisit this page. My team and I are always here to assist you. Have a good one!