PayPal Fees

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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fpchurch
Posts: 57
Joined: Thu Jun 14, 2007 2:12 pm

PayPal Fees

Post by fpchurch »

Hi
We have been using a card reader through PayPal and would like some ideas as to how to record the fees in Church Plus.
Thanks

NeilZ
Posts: 10576
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: PayPal Fees

Post by NeilZ »

fpchurch wrote:Hi
We have been using a card reader through PayPal and would like some ideas as to how to record the fees in Church Plus.
Thanks
I did a search on Paypal and this appeared to have the most options to use:

viewtopic.php?f=3&t=10856&p=34012&hilit=paypal#p34012
Neil Zampella

Using PC+ since 1999.

Karen Nesbit
Posts: 7
Joined: Tue Nov 06, 2012 9:12 am

Re: PayPal Fees

Post by Karen Nesbit »

When I enter Paypal fees, credit card fees, any fee associated with a contribution, I make a journal entry at the end of the month:
Say a contributor gives the church $100 via credit card/paypal/square, etc. Enter the contribution in the contribution module, the resulting transaction looks like this in Fund Accounting (FA):

DB 01-1110-000 $100 (This is the bank account the money goes into)
CR 01-4040-000 $100 (This is the income account the money went into)

Then I make a journal entry at the end of the month removing the credit card fees from the associated bank and income account (this can be done with any fund, too, just remember to debit the correct income account):

DB 01-4040-000 $2.75
CR 01-1110-000 $2.75

This lowers the amount of income that went in to the bank, and reduces the income account by the same. Contributions reports still report the full amount given - $100, the reports on the FA side reflect the amount actually received in the bank account - $97.25.

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