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annstephens
February 24, 2019
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Recording Donations received via PayPal

  • February 24, 2019
  • 2 replies
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QB Desktop for nonprofits Premier 2019.

I'm just starting QB for the first time this new year in 2019. I have set up the books and done all the donations/deposits and bill payments for our checking and savings account. I am now recording the donations made to our PayPal account using Donations icon (Sales Receipts). I listed each donor and the date and amount of the donation, including the PP fee with a negative number (-0.74) so the actual amount that we receive is correct. However now i have those donations showing in my Make Deposits window and I wouldn't be making a deposit to our bank account with those. I would be occasionally just be transferring the balance from PP to our checking account several donations at a time. How do i clear the Make Deposits window? I see on the home screen that i have 3 deposits (in red) to be made. Do i actually "make a deposit" somehow to our PP account in QBs? But if i did that, then whenever i actually transferred an accumulated amount of deposits from PP to checking, the checking balance wouldn't reconcile.

Thanks for your help.

Ann

 

Best answer by qbteachmt

You're right... I did not explain this very well... you said:

"You seem to be describing your Purchase, not a Sale, here: "We occasionally buy books or order tshirts to sell but usually pay when purchased" That is your Write Check or Enter Credit Card Charge/"

OK... trying again...

If i buy some books online or at a store to sell and I pay immediately, that's a purchase for me, so to properly record this, do i use...

- Vendor > Enter Bill > Save and then Vendor > Pay Bill > Pay Selected Bill or

- Nonprofit > Enter Bill > etc... same options are available (does it matter?)

or you're saying just skip all that and when i purchase something and pay immediately, I go directly to Write Check or Enter Credit Card Charge ? If so, when do you use Vendor/Nonprofit path?

 

and then when i sell the book to a customer, do i use...

- Nonprofit > Receive Payment (Customer Payment window) ?

 

(I'm sorry... I will ask just one question at a time to try to be less confusing...)

 


Let's take it a bit at a time:

"If i buy some books online or at a store to sell and I pay immediately, that's a purchase for me, so to properly record this, do i use...

- Vendor > Enter Bill" <== You already paid. There is No Bill that needs to be entered, and then Paid Later. You Already Paid.

 

"and when i purchase something and pay immediately, I go directly to Write Check"

 

Write Check = paid directly from Checking using paper check, paperless, debit card, EFT, ACH, etc.

 

"or Enter Credit Card Charge ?"

 

If you put it on the Card, sure, you need to enter how you paid for it = bought it by using the credit card.

 

"If so, when do you use Vendor/Nonprofit path?"

 

Menu = words at the top. Vendor Menu = vendor tools. NonProfit menu = a subset of tools grouped together for convenience, that show as if they are specifically NFP functions, but they are not. it's just an Extra Menu holding a set of the standard tools seen elsewhere.

 

"and then when i sell the book to a customer, do i use...

- Nonprofit > Receive Payment (Customer Payment window) ?"

If you Made the sale by listing it on an Invoice, you will Receive Payment to show the invoice got paid, when it gets paid. If you also got paid right then, that is Sales Receipt. This is from the Customer's menu, because it relates to Customers.

 

Purchases are entered for who and when you paid, from which source of resources: Checking, Cash on Hand bank, Safe Bank, Credit Card. Or, Bill = to be Paid Later, such as an Auto Parts store makes multiple daily deliveries to the Auto Repair shop, and then sends a Statement at Month End for them to Pay later. Each delivery is Enter Bill. The payment against the statement is Pay Bills, selecting all the deliveries that now are being paid for.

2 replies

A
Anonymous
February 24, 2019

You need to create Paypal as a Bank account in QB. Make the appropriate deposits to the Paypal account. As you transfer money from Paypal to your regular checking account, you will record a Bank Transfer (Banking menu).  You can and should reconcile Paypal just as you would any bank account. 

    A
    annstephensAuthor
    February 24, 2019

    I'm replying to each of the 3 of you individually who gave me good information...

    1) I have created PayPal as a "bank" account as well as my regular checking account and my savings account, so i have 3 accounts to which money will be deposited.

    2) As a nonprofit, I was advised earlier that I do not use from home (icon) screen I should NOT use "Receive Payments" bc that is for payment of items that were invoiced or that we sell.

    3) I was advised for a nonprofit, in order to be sure their donation is properly recorded, I should use the home screen icon "Donations" (Sales Receipt) and then record customer info so they'll be credited in the reports and on that screen there is no place to choose the account (Checking or PP, etc) - i just choose the Item I've created - Donations... so I did that for the PP donations as well choose Items > Donation.

    4) When I go to Make Deposits these donations are listed and I compile them into a deposit to the bank. The donations made to PP are listed just like the banking Donations but there is no place on the "Payments to Deposit" screen to choose to deposit them to PP.

    5) I understand that as any point that we're ready to move the money from PP to checking, I can do a bank transfer but confused about how to handle donations that are made to PP and sit there until i transfer the total PP amount into our checking account.

     

    Please let me know where in this process I am off track.

    Thank you,

    Ann

    qbteachmt
    qbteachmt
    February 25, 2019

    Item 2:

    Sales Receipt = Donation Form, because you already got paid.

    Invoice = Pledge, such as Grant tracking or Fundraiser, or annual Dues = the payment is later than the date on that unpaid sale

     

    You use what applies to you for each type of activity.

     

    I recommend the book Running QB for Not For Profits, by Kathy Ivens. Don't listen to whoever told you Never to use Receive Payment; they are Wrong.

     

    3. Customers menu has Customer Transaction. Donors and Sponsors are Customer names, in QB, if you need to track it in QB. Or, Home Page Icon. Or, left side shortcuts bar. That's how you get to the function from various perspectives, but that opens the same function, no matter where you access it from. I don't even use the Home Page, most times; I teach from using the menu, since it is always in your view at the top.

     

    4. After you Select from the UF pop up, the next screen is the Actual Deposit screen, and top left, select Operating Bank. And you might like to use a Payment Method of PP as well as the other selections, so that when you work on a Sales Receipt or a Receive Payment, you assign Payment Method. Then, in the Make Deposit function, you see how you can select from the UF Pop up to show yourself only "payment method = Checks." That makes it simpler to identify and subset "by bank as destination account." That's why Payment Method is our list to control and to add to, for our own tracking needs.

     

    5. The sales receipt or payment is Deposited to PP bank, which you do Directly in the Sales Receipt Screen or the Receive Payment screen. You don't flow them into UF first, since they hit the PP bank individually.

     

    You Batch a total deposit into an envelope to take to the bank teller, in real life. I process 41 payments via ACH, for one date against invoices, and will see One Deposit Total into Banking from the bank statement and I want that same condition in QB. If people pay me by PP, that is Individual entries directly to PP bank.

     

    Your bookkeeping should match your reality.

    Rustler
    Rustler
    February 24, 2019

    set up a bank type account named paypal

     

    use make deposits and deposit the amount to the paypal bank account

     

    when you move money from paypal to the checking account, use transfer

    qbteachmt
    qbteachmt
    February 24, 2019

    And this part here is an error: "I listed each donor and the date and amount of the donation, including the PP fee with a negative number (-0.74)"

     

    The Donor gave you that Gross amount. The Banking or PP fee is Yours, not theirs. It doesn't reduce Donation. It reduces Banking. Your Gross Donation is a Net to Bank.

     

    "now i have those donations showing in my Make Deposits window and I wouldn't be making a deposit to our bank account with those."

     

    Go to Edit menu > Preferences, Payments on the left, then Company Preferences tab on the right. Remove the checkmark for "Use UF as my default."

     

    Now the top of the Sales Receipt offers "Deposit To:" and you select Pay Pal Bank. You get a statement from PP and you track this Gross Deposit into PP bank. You use Banking menu > Write Check to enter that the PP Bank, top left, incurred a Banking Fee. Now you reconcile this PP Bank to the PP statement. And yes, you Transfer funds to checking when you want to Move Funds from PP to Checking. This is not when you got the income. This is just banking.

     

    And you will also Make Deposit for those historic Sales Receipts, now, to the PP bank. But fix them and Remove your Banking fee.

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