Hi NWM,

You are correct.  As an alternative, you can setup your Paypal as a credit card accepted payment method under Setup, Settings, Company, Credit Cards, Accepted.  When you use it in a sales invoice, it will debit the Paypal asset account and credit the revenue and tax account.

Hope this helps.  

Hi NWM,

You are correct.  As an alternative, you can setup your Paypal as a credit card accepted payment method under Setup, Settings, Company, Credit Cards, Accepted.  When you use it in a sales invoice, it will debit the Paypal asset account and credit the revenue and tax account.

Hope this helps.  

Thank you,

Just a quick confirmation then on setting up the linked accounts for Paypal. For the asset account, it would be Paypal Receivable (with an item number in the 1000's category), and for the expense account it would be Paypal commissions/fees (in the 5000's)?

And when I add the Paypal account into my chart of accounts its Paypal Account (again in the 1000's category, but as a cash account not a receivable)?

Thank you

Hi NWM,

You are correct.

For the class of the account, you can set it up as cash or bank.  It is up to you.  

Hope this helps.  

Sorry one last question about Paypal, for the expense account, for the credit card's accepted, would I use the account Credit Card Charges as I did for used credit cards, or would I use a different expense account for accepting Paypal such as Paypal Commissions/Fees?

I used the account Credit Card Charges for all my other credit cards expense accounts for the used credit cards. Not sure if it's the same expense account for accepted credit cards.

Thank you

Hi NWM,

You can use a different account for that.

Hope this helps.  

I have a question.....I set up PayPal as an option of acceptance as a credit cards for the company. The problem I am running into is the discount fee.....I get only one or two PayPal transactions per month......the discount fee is 2.9%  plus .30 cents for each transaction. How do I handle the .30 cents per transaction?  What transactions do I do?