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MYOB: Dealing with PayPal payments and merchant fees

January 9, 2019

This is for me, because I’m bound to forget what to do the next time someone pays me via PayPal and I have to account for the PayPal fee incurred.

Follow Steps 7 and 8 in this support note from MYOB: http://help.myob.com/wiki/display/supae/PayPal+payments+from+customers

In case that webpage ever goes missing, here are those steps:

Step 7: Receive Payment

When payment for the sale is received it comprises the net payment you will receive for the sale, plus the PayPal fees. In our example the total sale was $100, which comprises a net sale value of $98 plus a $2 PayPal fee.

This is recorded as two separate Receive Payment transactions:

  • one payment for $98 which is allocated to the PayPal Bank Account
  • one payment for $2 (the PayPal fee) which is allocated to the PayPal Clearing Account.

To record the payment for the sale

  1. Go to the Sales command centre and click Receive Payments. The Receive Payments window appears.
  2. In the Deposit to Account field at the top, select the PayPal Bank Account.
  3. In the Customer field, select the customer to whom you made the sale. The customer’s open invoices will be displayed.
  4. In the Amount Received field, enter the net sale amount, in other words the total sale amount minus the PayPal fees. In this case it would be $98.
  5. Click in the Amount Applied column for the customer sale. The amount will be automatically applied. See our example below.
  6. Click Record.

 

To record the PayPal fees

  1. Go to the Sales command centre and click Receive Payments. The Receive Payments window appears.
  2. In the Deposit to Account field at the top, select the PayPal Clearing Account.
  3. In the Customer field, select the customer to whom you made the sale. The customer’s open invoices will be displayed.
  4. In the Amount Received field, enter the amount of the PayPal fees. In this case it would be $2.
  5. [Optional – see Task 1 above] In the Payment Method field, select PayPal.
  6. Click in the Amount Applied column and the amount will be automatically applied. See our example below.
  7. Click Record. The $2 will be allocated to the PayPal Clearing Account and this will be cleared out in the next task.

Step 8: Clear the PayPal Clearing Account

The final task is to clear the PayPal fees from the PayPal Clearing Account to your Merchant Fees expense account. To do this:

  1. Go to the Banking command centre and click Bank Register. The Bank Register window appears.
  2. In the Account field, select the PayPal Clearing Account. The payment made to this account in the previous task will be listed.
  3. Click to highlight the PayPal payment.
  4. In the bottom section of the widow in the Type field, select Spend Money.
  5. In the Card field, select the PayPal supplier card.
  6. In the Amount field, enter the amount of the PayPal fees – in this example that would be $2.
  7. In the Account field, select the Merchant Fees account created in Task 4 above.
  8. In the Tax/GST field, select the relevant tax/GST code.
  9. Click Record. See our example below.

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My next step is to find out how I can add an automatic percentage fee to an invoice to account for the PayPal fee (and BPay fee, if I ever get it). It doesn’t look like this will be easy to do…

2 comments

  1. Why have 2 PayPal accounts? Why not just pay $100 to the PayPal Account and then Spend Money out of the account for the $2.00 fee? Makes everything easier to Reconcile this account with your PayPal account Transactions List.


  2. Thanks Sally — I’d wondered why there were two accounts too, as it seemed like unnecessary overhead.



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