How to Record Sales from PayPal in QuickBooks - YouTube

Hey guys, it's Candus and in today's QuickBooks tips and tricks

I want to show you

if you are selling

items, products and services through PayPal,

how you can use sales receipts to track them.

In a previous video, I taught you guys how to create an invoice

and then receive a payment, which is a two-step process. This is

basically tracking accounts receivable,

and then getting paid later.

A sales receipt

is if you're getting your,

providing a product and service and getting paid at the exact same moment,

you can combine the two transactions and do it directly in one.

That's the benefit of a sales receipt.

So let's walk through what a sales receipt looks like.

You can choose in a sales receipt,

depending on how you're tracking your PayPal,

you can either have

each individual customer,

as a customer and QuickBooks.

Or you can have basically daily sales, online sales,

where you put all your customers

without tracking their individual names.

For me, personally,

I have

too many different customers

that I work with that

I only maybe sell 1 to 3 items to

over the life of their, of them being my

customer.

So for me, I don't track

each individual customer because my

customer list would just become

too long.

You, I offer two types of payments,

stripe which is a merchant provider

and PayPal,

PayPal when you use them,

they basically do one transaction at a time inside PayPal,

inside stripe, they do batches.

So depending on what type of

merchant provider you're using,

you'll have different techniques that you want to do.

So if

you're just doing one-off,

you have you track want to track all your individual customers,

you would pick your customers name?

If you

don't need that, and you want to summarize it, then you would just pick

online sales, something like that.

Alright,

then the next thing to know is whether or not you want to use undeposited funds.

Or if you want to put it directly in Paypal,

what is the difference, if you go under Edit, Preferences,

and you go under payments,

company preferences,

you can choose whether you

just automatically go into what's called undeposited funds, which is basically

think of it like a bank bag,

you've received the money,

but it hasn't actually went into your bank

yet.

It's sitting there.

That's a really good example for PayPal, because

typically PayPal doesn't automatically get put into your account.

It sits inside of PayPal till you move it.

But we actually, I recommend and I did

taught this in the last video,

how to go in

to your chart of accounts.

And you want PayPal to actually be a bank account.

That way you can track the money coming in,

and the money going out of PayPal, just like a bank account. Alright.

So in this example, you can either use

undeposited funds where it sits there,

or you can put it directly in Paypal,

if you put it directly in Paypal,

on the sales receipt, which I will show you in a moment,

you will need to track your merchant

cost, what it costs you for your merchant.

But this can actually save you a lot of time.

In the previous video, I taught you how to

take the merchant fee out of the deposit itself.

So what I would do is I would

pick my online sales for me for example,

pick PayPal,

then here, I would

make sure I had, if you don't already have it set up, I thought this in last video as well

make sure you have a new have a new

payment method called

PayPal,

and make sure it's set up as cash.

So it doesn't try to process your credit card for you

choose PayPal,

pick the date that the sale happened the day that it processed through PayPal,

then come down here and you're gonna pick

just like on an invoice

your items. The benefit of doing this

is that it allows you to pull a lot of extra reports to track what's actually happening

with the products and services that you're selling.

So let's say that we picked online course

are doing one customer at a time,

just like it was processed through PayPal,

then what I do is I actually choose PayPal,

I set PayPal up,

it's going to an expense account, and that's okay.

I set PayPal up

by clicking New,

creating an other charge,

setting up PayPal.

And then I put PayPal back to a merchant fee

And

they're nontaxable.

Okay.

And then I click OK. And that creates

my PayPal account,

my PayPal item,

then I come over here

and you are going to choose

the percentage or the cost.

So when you log into your PayPal, it's gonna tell you

what the fee was, so you're gonna have the,

the total charge and then below that,

it's gonna tell you what their

rate they charged.

You want to make sure it's a negative number.

Because what it will do is you'll see down here at the bottom,

I'm gonna put directly in because I'm doing as a sales receipt into PayPal,

the product and service I sold

and I'm gonna do the total amount that came out as a merchant fee.

And this is the amount that actually went into my PayPal account.

Okay,

if you had five or six items that one customer purchased for a sale,

you can do that.

If you want to be able to summarize, because you have a whole lot going on

within your PayPal and you want to do

a daily

transaction,

that's fine,

you just want to make sure that

when you,

however you're doing it.

you're able to track accurate records.

Okay.

And then you're gonna click Save and Close.

Now, when I go look at my check register inside PayPal,

I'm gonna see

my sales receipt right here.

And if you hit Ctrl-Y,

it shows you what happened, which is

your

bank account increased by the amount that you actually got with PayPal,

the PayPal bank account,

and then your

sales increased,

and then your merchant fee.

And I'll show you on a profit and loss,

because people like to see that sometimes.

Exactly what happened,

there is your income. And there's your expense

all handled at one time.

All right.

Now you can do,

let's say for example,

you didn't want to handle your paypal directly

on the sales receipt,

because you want to send it to your customer,

you don't want them to see it something like that.

What you could do

keep this to undeposited funds,

leave it the way it is just like

normal,

then when you go over here to record your deposit,

you're gonna choose

your

item,

you're gonna choose PayPal, if that's where the money went,

then in here,

you're gonna pick PayPal,

merchant fees,

PayPal, if you want, you can put that there.

And then you're gonna put

whatever amount you paid

$24.14

That was I did 24.91.

And then that would be the amount you deposited.

And the merchant fee would be handled in the deposit.

Similar to what I taught in the last video, I'll make sure I link

the last video up above. So you can watch that if you want.

But these are two different options.

You can either take the merchant fees out,

inside the deposit itself,

or

on the sales receipt, depending on if

who sees the sales receipt.

It's

quickest and easiest to do it here because it's a one-step process.

But if you do need to give your sales receipt to a customer,

you can do it in the deposit and they won't see it.

I hope this helps you guys

realize there's a few different ways to handle PayPal.

I'm gonna create another video

on PayPal, but it's gonna be about what do you do when you have to refund a customer?

How do you track that inside of QuickBooks.

I look forward to seeing you guys inside the next video.

I hope you enjoy this.

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Bye-bye.