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PayPal Questions

Here are some fast answers to questions recently asked through the Fathom site.

Use our contact form to submit a question for Fast Answers.

 

Show/Hide AnswerHow do I record customer payments through PayPal?

A payment from a customer though PayPal should be treated just like any other payments from a customer. Go to Customers, Receive Payment and record the total amount that the customer paid. The payment method should be PayPal.

Next go to banking, make deposits. Select the PayPal payment. If there are more than one, select just one at a time.  When you have the deposit window on the screen, click in the row below the customer payment. You will enter the merchant fee deducted by PayPal here.

Under Received From, enter PayPal.

Under Account, enter Merchant Fees, or Bank Fees or Service Charge. Use whatever account you would normally use for merchant or bank charges.

Under Payment Method, enter PayPal.

Under Amount, enter the merchant fee charged by PayPal for that single payment as a negative amount. Your total deposit should then equal the amount that PayPal deposited into your PayPal account.

Be certain that you are making this deposit into your PayPal bank account.

Save the deposit.

Show/Hide AnswerWhat about a payment through PayPal when it is not received from a customer?

If you receive a payment through PayPal and it is not a customer, skip the Receive Payments step. Go directly to Banking, Make Deposits, enter the payment information in the first line, recording who you received the funds from and the full amount.

Complete the second line of the deposit slip as above so that the total deposit matches PayPal.

Be certain that you are making this deposit into your PayPal bank account.

Show/Hide AnswerHow do I record transferring funds from PayPal to my general checking account?

To transfer funds from your PayPal bank account to your general checking account, just go to Banking, Write Checks. Write a check on your PayPal account for the amount you wish to transfer. In the account section at the bottom of the check, enter your general checking account name. This will record the withdrawal from your PayPal bank account and also will record the deposit into your general checking account.

Your PayPal account is nothing more than another bank account where you can keep funds, it is just like a checking or savings account in a regular bank.

Show/Hide AnswerHow do I record transferring funds from my general checking account to my PayPal account?

To transfer funds from your general checking account to your PayPal account, just go to Banking, Write Checks. Write a check on your general checking account for the amount you wish to transfer. In the account section at the bottom of the check, enter your PayPal account. This will record the withdrawal from your general checking account and also will record the deposit into your PayPal account.

Your PayPal account is nothing more than another bank account where you can keep funds, it is just like a checking or savings account in a regular bank.

Show/Hide AnswerHow do I reconcile my PayPal account?

Your PayPal account is nothing more than another bank account where you can keep funds, it is just like a checking or savings account in a regular bank.

First, log in to your PayPal account. Go to the Classic site (try the link on the bottom of the page) and get your register on the screen. Click the link to show All activity (with balance). Set the dates to show the time period from the date of your last reconcile to today. Print the page by clicking the Print link. If the report runs to more than one page, there will be a Next link. Click Next and print the page until you have printed all pages.

Reconcile your PayPal account just like you would reconcile a regular checking or savings account. It is easier to do one page at a time. Complete the reconcile when the difference is zero, print the detail reconcile report. Then do the next page in reverse date order until you are current.

 

Advice and tips provided on the Fathom Graphics website are not a substitute for advice from your CPA, tax preparer or attorney. We are not CPAs or attorneys and do not provide legal or tax advice.