Hello all:

After reading some posts about how to enter transactions into QB, I do have some questions.

There are some people that say to enter just the end of day sales from our billing system rather then entering every created invoice and sale, which I do agree with sinc we have a large client base. But my question is in either way we do it, Paypal transactions have the fees deducted immedately. So when I try to reconcile the transactin with the bank (automatically - online method in QB) it says over payment and won't allow the transaction. How do I adjust this so that the transaction matches?

Our credit card processing matches transactions because the fees aren't even deducted until the end of the month.

What I've always done is only enter things at the end of the month using the Paypal account statements. I treat Paypal as a bank account in the system as it always has some funds in it.

For the merchant account I just base it off of the statements and the amount coming in. I don't give the merchant account it's own bank in the system as the funds go to the company bank account.

That's how I've been doing it and the accountant has not had an issues with this method. This is what I was advised to do so I have yet to change things.

Thanks for your reply. The problem we have is that we transfer the daily funds from Payal to the bank account every day, so my merchantaccount and Paypal account funds are both sitting in the company bank account.

You could do a manual journal entry for the fees and your transfer:

Dr Bank Account $800
Dr Paypal Fees $200
Cr Paypal $1000

Doing that daily would be rather unfortunate though. I'd just reconile monthly if possible.