This one always stumps people because they figure that only income can be recorded in the Make Deposit Window.
For example below, Heather Campbell has paid me through my Paypal account. Now, I could download my transactions from Paypal, but I want to track my sales through items so I can see what I sell the most of. When I go to download from Paypal, only the net deposit is downloaded, which in this case is $975.00. So, I may have charged her $1000.00 for my services, but Paypal charges a fee of 2.5% for the service of collecting the funds via a credit card so I have to show that merchant fee of $25.00 somehow.
Here is how I record the payment to Heather Campbell's account:
For example below, Heather Campbell has paid me through my Paypal account. Now, I could download my transactions from Paypal, but I want to track my sales through items so I can see what I sell the most of. When I go to download from Paypal, only the net deposit is downloaded, which in this case is $975.00. So, I may have charged her $1000.00 for my services, but Paypal charges a fee of 2.5% for the service of collecting the funds via a credit card so I have to show that merchant fee of $25.00 somehow.
Here is how I record the payment to Heather Campbell's account:
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| Click photo to enlarge |
Next, I record the deposit and enter the merchant fees:
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| Click photo to enlarge |
So as you can see, you will enter the sale for the full amount to clear the invoice and enter the merchant service fees expense this way. Then you will be recording the correct net amount that actually deposited into the bank.
Courtesy of our colleague Lynda Artesani, Certified QuickBooks ProAdvisor in SW Florida
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