To keep life simple, I usually print the Monthly Financial Summary from Paypal. I post the total monthly sales as one bank receipt into a bank account that is specially set up for Paypal. I post a bank payment to account for the total monthly fees. I check that all the drawdowns have been picked up when I have been posting my current account, and then I analyse the purchases made through paypal by clicking on the monthly summary (you will see each total is blue underlined and will take you into a breakdown).
The summary will give you an opening and closing balance, just as a bank statement would. You match Sage to this and can perform a bank reconciliation each month.
Then you can add your non Paypal sales as normal.
Hope that helps :)
-- Edited by FoxAccountancyServices on Saturday 18th of May 2013 12:40:23 AM
I am having a little difficulty reconciling online sales. I have a monthly sales report showing a total of sales for each day. This will be all sales and not just paypal. I then have a similar report for the paypal sales.
Each day's sales are entered into a holding a/c spilit by sales/shipping. When the money is received into the bank I journal a transfer to the current a/c for the amount received. The fees are entered as a total for the month.
Not sure what I do about refunds and discounts on the paypal report?
The sales holding account should just go to nil each month but of course that never happens as there are always sales that have not yet been received in to the bank.
Am I over-complicating this and can anyone help me with a reconciliation spreadsheet maybe?
So by posting the total sales as one amount, I wouldn't need to worry about any refunds as this would be accounted for in the total?
I don't have access to download the info from paypal but I will check when I am next in that the sheet I have has an opening and closing balance and do as you suggest.
