Reconciling External Merchant Fees


Payment services such as PayPal take their own merchant fee for processing your Reckon Ecommerce orders. As we have no visibility into this fee, you will need to account for this manually.

Example

An order for $49.00 using PayPal payment services has a Selz fee for $0.24, and a PayPal fee of $1.97.

Order using PayPal

However the IPA Books+ journal will not show this fee as it is generated by PayPal.

Order with PayPal journal

Accounting for the PayPal fee

Per Order
  1. Open the Reckon Ecommerce order that relates the the PayPal fees.
  2. Open your IPA Books+ book.
  3. On the side menu, go to Day to Day > Business > Journals
  4. Open the applicable Journal in IPA Books+. We recommend searching by date, or the Reckon Ecommerce order number in the journal summary.
  5. Add a line to the journal using the same account as used for the Selz fee.
  6. Add the total fee amount.
  7. Add the applicable tax code (see PayPal to determine what tax, if any, applies).
  8. Reduce the Ecommerce clearing account by the same amount as the fee (including tax).
Per Period

For simplicity you can create a one-only Journal, or indeed Money Out transaction to cover the PayPal fees for one period. A period could be a day, week, or month depending on your order volume and tax reporting obligations.

  1. Determine your total PayPal fees for the period. This is best done via your PayPal account.
  2. Open your IPA Books+ book.
  3. On the side menu, go to Day to Day > Business > Journals
  4. Create a new Journal in IPA Books+.
  5. Ensure the Journal type is Gross (Tax Included).
  6. Add a line to the journal using the same account as used for the Selz fee. If your fees were a positive amount for the period (came out of your PayPal account) this should be entered in the DR column.
  7. Add the applicable tax code (see PayPal to determine what tax, if any, applies).
  8. Add a second line to the journal using the Ecommerce clearing account - this is a Bank type account. If your fees were a positive amount for the period (came out of your PayPal account), this should be entered in the CR column.
  9. Save, noting that a Journal should always balance. that is, DR total = CR total.

This information is general in nature and not tax advice. You should always consult with your qualified adviser for advice specific to your circumstances.

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