QB Issue Resolution:

Let me clear out the confusion for you, @Blondimlb. Rest assured that I’ve got the steps to record the $2.60 PayPal reversal fee. This can be done by entering a deposit. It will offset the original charge in the Bank Fee or expense account your client is using. I’ll guide you how.

  1. Go to the + New button from the left menu.
  2. Click Bank deposit under Other.
  3. Choose PayPal as the account.
  4. Verify the Date.
  5. Select the customer in the Received From column.
  6. Choose the appropriate expense account.
  7. Set the Payment Method.
  8. Enter 2.60 as the amount.
  9. Hit Save and close.

The screenshot below shows you the last seven steps. For detailed instructions, check out this article: Record and Make Bank Deposits.

BankDepositForPayPalReversalFee.PNG

Once done, go to the For Review tab. From there, you’ll be able to match the $2.60 Received to the deposit you’ve just created. This helps you avoid duplicates in the program.

Aside from PayPal transactions, you can edit, assign, and categorize the other ones. This ensures your client’s financial records are correct. To learn more about this process, go through this article: Categorizing Downloaded Bank Transactions.

Moreover, it’s a great idea to reconcile your client’s PayPal account monthly. Doing so will ensure the account in QuickBooks matches your client’s bank statement. For more details, visit this article: Reconciling An Account.

Resolution for Issue 'One of my clients has the Paypal feed in QBO. If they refund a customer, the refund and the reversed Paypal fee come through as 2 separate transactions. How do you record the reversed paypal fee? For example, my client makes a sale for $100 and Paypal takes $2.60 of that for their fee. My client’s customer decides to cancel the sale and my client refunds the customer in full. When the refund comes through on their Paypal feed, it shows $100 Spent and $2.60 Received. I know how to record customer refunds but I’m a little lost on how to record the Paypal fee reversal. Please advise. Thank you.' available: Yes (Solved).
Source: Intuit Community forum.

One of my clients has the Paypal feed in QBO. If they refund a customer, the refund and the reversed Paypal fee come through as 2 separate transactions. How do you record the reversed paypal fee? For example, my client makes a sale for $100 and Paypal takes $2.60 of that for their fee. My client’s customer decides to cancel the sale and my client refunds the customer in full. When the refund comes through on their Paypal feed, it shows $100 Spent and $2.60 Received. I know how to record customer refunds but I’m a little lost on how to record the Paypal fee reversal. Please advise. Thank you.: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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