PayPal

[Buffalofoodshelf1]

I am now offering the option of donors using PayPal for their donations.

I plan on posting the donation amount to the specific donor - for the full amount of the donation.

I will then set up a "PayPal Fees" fund - and do a negative entry for the PayPal fee - thus resulting in a deposit that will match what is transferred to my bank account from PayPal.

John Doe $100.00
PayPal Fee -$5.00 (for example only)
Amount posted - $95.00
Amount transferred to bank from PayPal - $95.00

My question - the "PayPal Fees" fund - what account should the amount debit to? The same (Income account) that the donation is credited too? Or set up another income account (in accounting) and have all of the PayPal fees be debited to that account?

Any input would be appreciated. Thank you.

[NeilZ]

This thread will give you some ideas:

viewtopic.php?f=4&t=3794&p=12885

The PayPal fees will need to be listed as an expense, but the thread above will assist you in figuring out what you need to do.

[Buffalofoodshelf1]

Thank you.