Record PayPal transactions

1. Click Bank accounts then click New/edit and click New.
   
   
2. Complete the Bank Record as follows:

   A/C Ref	Enter the nominal code you want to use for your PayPal account, for example, 1215. NOTE: If you're using the Sage default nominal structure. We recommend you use a number within the range of 1210 to 1239. Sage 50 Accounts uses this range for deposits and cash accounts and your financial reports are already set up for these groupings.
   Nominal Name	Enter a description for this bank account, for example, PayPal.
   Current Balance	Displays the current balance of the account. If you want to enter an opening balance for the account, click the opening balance button, , and when prompted to save the record, click Yes. Complete the Opening Balance Setup window as required then click Save. TIP: Enter your opening balance in the Receipt box.
   Minimum Limit	Enter the amount that you don’t want the balance of this account to fall below. If the amount of money you have in this account goes below the amount specified here, the bank account appears in red in the Bank Accounts window.
   A/C Type	From the drop-down list, click Cheque Account.
   No Bank Reconciliation	If you don't want to run a bank reconciliation for this account, select this checkbox.

   NOTE: To add further details to your bank account, click the relevant tab from the Bank Record window then complete each box as required.

3. Click Save and click Close.

You've now created your PayPal bank account. Your PayPal Account in Sage is effectively a bank account so you can record money received by using a Bank Receipt.

Also create a nominal account to record fees charged by PayPal. For further information about this, refer to the following section.

1. Go to Nominal codes then select New.
   
   
2. Complete the Nominal Record as follows:

   N/C	Enter the number for the nominal code you want to create. TIP: This should be within the Overheads section of the Chart of Accounts. If you’re using the Sage default nominal structure, the Overheads range is 7000 to 9999.
   Name	Enter a name for the nominal code, for example, PayPal fees.

3. Click Save, then click Close.

You've successfully created a nominal code to record your PayPal fees. For further information about how to record these fees, refer to the following section.

NOTE: Post the initial Sales Receipt or Bank Receipt to the PayPal account.

1. Go to Bank accounts then select Bank payments.
2. Complete the Bank Payments window as follows:

   Bank	Date	N/C	Details	Net	T/C	Tax
   PayPal account	This should be the same date as the receipt	PayPal fees nominal code	PayPal fee	Fee amount	Tax code, for example, T2	VAT amount, for example, 0.00

   NOTE: PayPal fees are VAT exempt. The default tax code for exempt transactions in Sage 50 Accounts is T2. If you use a different tax code for exempt transactions, replace T2 with your relevant tax code.

3. Click Save and click Close.
   
   

You've now recorded the PayPal fee. For further information about withdrawing funds from your PayPal account, refer to the following section.

1. Go to Bank accounts, select the PayPal account, then select Bank transfer.
2. Enter the relevant information into the Bank Transfer window, for example:

   From	The PayPal account appears here.
   To	Enter the nominal code of the bank you want to transfer the money to.
   Ref	If required, enter a reference for the withdrawal.
   Department	If required, enter a department for the withdrawal.
   Date	Enter the date for the withdrawal.
   Details	Enter the details for the transfer, for example, PayPal withdrawal.
   Payment Amount	Enter the amount you’ve withdrawn from the PayPal account.

3. Click Save and click Close.

You've now recorded the details of your PayPal withdrawal. For further information about recording refunds from your PayPal account, refer to the following section.

To refund a payment from your PayPal account, you should post a customer refund or a bank payment for the total refund amount using your PayPal bank account.

When you post a refund from your PayPal account, PayPal automatically refunds any associated transaction fees. To record this, post a bank receipt to your PayPal account.

1. Go to Bank accounts then select Bank receipts.
2. Complete the Bank Receipts window as follows:

   Bank	Date	N/C	Details	Net	T/C	Tax
   PayPal account.	This should be the same date as the refund	PayPal fees nominal code	PayPal fee refund	Refund amount	Tax code, for example, T2	VAT amount, for example, 0.00

3. Click Save then click Close.