How do I process Paypal customer sales and refunds in Reckon Accounts Plus 2018 desktop?

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  • Updated 3 months ago
I have a shopping cart software online business with inventory.

When I sell and the customer chooses Paypal as payment that's fine but where my problem lies is when they want a refund especially if it occurs several weeks later.  How do I process a refund so it balances with my Paypal report?
I sell under 'create sales receipts' tab, with no customer name all sales are tagged to CASHSALES.

In sales, for example I might transfer the money from my Paypal account to my bank account, lets say 2 $50 sales totally $100.  Then I receipt against those 2 sales in Reckon when the money hits my bank account.  I print the Paypal transaction list that equals $100 and everything is sweet.

But when one sale of $50 wants a refund a few of weeks later, I can't reconcile with my bank it won't balance as $50 is missing.  Lets say when I gave a refund through Paypal, I am $50 less in the balance and the next lot of sales don't balance with my bank rec in Reckon.
If only when I 'records deposits' there was the credit sitting there I could pick it up so it balances with my Paypal report, but it isn't.

Oh this is so hard to explain here, can anyone tell me how they process Paypal sales and refunds in their Reckon Accounts?  I have searched high and low in the internet to no avail.
Please help!!
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Chris B

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Posted 4 months ago

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Chris B

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I had another thought, do I need to create another bank account in my Reckon called PayPal and shift money between that and my bank accounts somehow?

Yes, that’s right Chris - Your PayPal account is another money-holding scenario.

Process all your PayPal Sales Receipts & Refunds through this & transfer the net deposit amounts into your bank account (out of the PayPal account posting to your bank account). 

You can use the “Transfer” feature for this although personally I prefer to use “Write Chq” as it allows for more detail.

 

Memorise one of each of your Sales Receipt, Refund & Net Transfer transactions under a Memorised Transaction Group called “PayPal” then you can auto-enter correctly each time & just edit accordingly.

 

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com


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Chris B

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Thank you so much for your advice Shaz, will definitely give that a go! Big thumbs up!
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Chris B

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Shaz, could I ask you something else please.
I have recently added Eway payments on my shopping cart website.  In my Reckon do I need to open a separate bank account for Eway also?  Is it best to keep the payment gateways separate?  Am I'm guessing I wouldn't have to ever reconcile these accounts since they are not real bank accounts?  I would only have to make sure when I 'write cheque' from Paypal to my real bank account that it is the actual fugure of the money that dropped into my bank so that balances, then of course reconcile just the bank account monthly.

Hi Chris

 

Yes, you’ve got it   :)

 

If the Eway gateway is a separate fund-holding account through which transactions go (customer payments less fees) then yes, I would create it as another “Bank” account.

 

You’re correct in that these clearing accounts technically don’t need to be reconciled because they should always come back to $ 0.00 (customer payment less fees > net transfer)

 

Shaz Hughes Dip(Fin) ACQ NSW, MICB

Reckon Accredited Professional Partner Bookkeeper / Registered BAS Agent (No: 92314 015)

Accounted 4 Bookkeeping Services

Ballajura, WA

0422 886 003

shazinoz2@bigpond.com

www.accounted4bs.com


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Chris B

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Thanks Shaz, it's working a treat!  Finally an answer to my problem, never thought of this before, really appreciate your assistance :)