How does everybody record their paypal fees?

When I add the item into the invoice (with the item as an expense) it still deducts it from the customers invoice. How exactly do I make it an expense for us? I'm becoming so frustrated, if someone could show me a simple way through AIM, MSN or anything, I would be extremely grateful. I will pay someone if needed.

Do you generate invoices for each customer by hand each month? You could consider using just sales receipts, or if you want to keep using invoices if you create the price as negative it should lower the invoice income to the appropriate level.

Help out at all?

Kind of, but if you make it negative in the invoice and enter the payment then the customer has now overpaid. When in reality they paid their invoice amount. Although sales receipts might be a better option for the industry.
Thanks!

I guess creating an invoice or sales receipt and then adding an additional entry to the register for paypal fees is the best way to go, maybe someone more familiar with quickbooks will come by though!

Kind of, but if you make it negative in the invoice and enter the payment then the customer has now overpaid

You put a bill from paypal into your account package, not adjust the invoice sent to the client. Then you click on "pay bills" ...

You put a bill from paypal into your account package, not adjust the invoice sent to the client. Then you click on "pay bills" ...

So for each invoice, I have to create a bill to PayPal?

. I will pay someone if needed.

That "someone" is called an accountant

We invoice our customers and keep that all in our billing system. Then once a month we grab our monthly account statement and record the revenue from paypal and the fee's incurred from it. We record the paypal fee's as a merchant gateway expense.

Our accountant advised this would be a clean way of doing it. Is it the best way I have no idea but it's simple. When we give our accountant the books at the end of the corporate year we just need to get them 12 account statements. So then Paypal is just like us giving them records of invoices and other things to make sure our books are accurate.

I think you're over-complicating it. If you count the whole gross transaction amount (before Paypal fees) as revenue, all you have to do later is count the Paypal fees as a payment processing expense like any other monthly bill. To detail the fees at a per-transaction level seems unnecessary when you can just put in the monthly aggregate of fees from the Paypal statement.

Shouldn't you be able to see all paypal fee's via Whmcs, that if you are using whmcs.

Thanks

How does everybody record their paypal fees?

When I add the item into the invoice (with the item as an expense) it still deducts it from the customers invoice. How exactly do I make it an expense for us? I'm becoming so frustrated, if someone could show me a simple way through AIM, MSN or anything, I would be extremely grateful. I will pay someone if needed.


Create a new account/expense called "PayPal Fees"
In customer's invoices, list the fee as a negative figure of the type/account created in step (1). If your fees are £4.25, enter -4.25
This means that you will "receive " -£4.25 into your "PayPal Fees" account/expense, which will in summary be an expense for you, despite being listed on your invoice

I do this to calculate FX differences, too.

Thanks everyone! We have figured it out:
At the end of each day, we make a general journal entry and put the fees in there and put the total amount of revenue the payment was.

Thanks!