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G
Gypsie
December 18, 2020
Question

PayPal Credit

  • December 18, 2020
  • 1 reply
  • 0 views

Hi, I am hoping someone might be able to help me.  I am using QB for the Self Emoloyed, and I am unsure how to categorise Paypal credit transactions.  If I buy something on paypal credit, for expalin i spend £1000 and use paypal credit to pay.  I then get a few different transactions show up in QB.  I have the -£1000 for the order payment going to the supplier (which i have marked as 'Cost of Goods for resale'), then there is a +£1000 which is marked as 'Transfer (Charge) - Paypal Credit'. I also have minus amounts to paypal credit for when i pay off my paypal credit account....  which i dont know what to make them as, do i mark those as 'repayments of loans' or 'credit card payments'? 

Its all confusing me, so any advice would be greatly appreciated! 

Thanks so much

Gypsie 

1 reply

J
JamesDuanT
December 19, 2020

I'll share what I know in this kind of situation, Gypsie.

 

Based on the details you've mentioned above, your PayPal Credit and PayPal accounts are connected to QuickBooks Self-Employed. Since you used the PayPal Credit, these are the transactions that will show under your PayPal Credit statement:

  • -£1000 - the amount spent
  •  £1000 - this amount will show after you pay the PayPal Credit using your PayPal or bank account.

Meanwhile, you'll see -£1000 under your PayPal or bank account's statement after paying the PayPal Credit account.

 

For credit card payments, you can categorize it under Expense Category. This will appear as Transfer in your Profit and Loss, Tax Summary, and Tax Details reports. This article is for You can use this link for reference: Schedule C and expense categories in QuickBooks Self-Employed.

 

You might also review this article since these categories are for UK regions: About SA103F Categories.

Aside from that, it is always best to consult your accountant on how you categorise the transactions. They know what's best for you and your books.

 

We'll be right here if you need additional assistance in recording your transactions that are based on your accountant's recommendations.

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