Have I set up PayPal correctly?

AndyK

I never did get the PayPal integration to work so I set up PayPal as an account under Cash and Bank and manually log each transaction or allocate via invoice payments. I log the full amount and then add an expense for PayPal fees. When I withdraw PayPal funds to the bank account I categorise that as a transfer from PayPal.

Am I doing this right?

Additionally I have an iZettle card reader and think I should have set up this the same way as PayPal but put it under Money in Transit instead. Should I correct this?

Myron

Hi @AndyK , it's nice to see you! When recording a PayPal transaction, you are able to record both the Invoice Payment and the Transaction fee as a single split transaction. This can save you the trouble of having to create a second expense transaction to account for the fee. To split a transaction, please first navigate to Accounting > Transactions. On this page, you will want to create a deposit transaction showing the net payment you received from the customer (with fees deducted). In the Edit transaction details panel for this transaction, click the Split this deposit button. Categorize the top line as a Payment Received for an Invoice in Wave and select the desired invoice to apply the payment against. In this line, enter the full amount of payment that the customer sent to your (before fees were deducted). Now, categorize the second line to an account under the Discounts and Fees expense category. This will change the value entry field to a negative. In this line enter the amount of the transaction fee. I'd recommend reading this handy article for a visual guide on this: https://support.waveapps.com/hc/en-us/articles/115000472306-How-to-account-for-transaction-fees

Transferring the funds to your bank account from PayPal is the right thing to do. This will accurately show the funds moving to the bank account from your PayPal account.

A Money in Transit account is meant to hold funds before moving them to a deposit account. This would be used in cases where funds sent to you don't post to your bank account right away.