PayPal bank feeds

Bank feeds also support PayPal (UK) transactions. However, unlike a standard bank feed, transactions imported from PayPal already have fees deducted from each transaction.

Things to consider

Consider where you want to record the fees paid to PayPal. You could record them using an existing ledger account, such as Bank Charges. Or, create a new ledger account specifically for PayPal fees.

Create a new ledger as an Overhead, making it visible in both sales and purchases.

How it works

There are three ways to record money received from the customer and the fee charged by PayPal:

Create an adjustment for the fees

Match the payment from PayPal to the invoice. Use the bank feed to add an adjustment for the fee. Use the Make adjustment option when processing the bank feed transaction.

Read match bank transactions from a bank feed or imported file for more information.

Create a credit note for the fee

Create a credit note for the fee amount, then match this, and the payment from PayPal, to the invoice.

If you've created a standalone credit note, read allocate existing transactions to understand how to match the credit note to the invoice.

Discard the payment from the bank feed and create two new transactions

Discard the PayPal transaction from your bank feed and create two new transactions:

• A Customer Receipt for the full value of the invoice
• An Other Payment for the fee

Read create bank transactions from a bank feed or imported file for more information.