| NESFA® Treasury Procedures – Table of Contents | Last updated 02-Feb-2012 |
PayPal batches are treated like ecommerce batches. except that the money is debited to the account AS-PayPal instead of the normal checking account. N.B. This is important, and if the money is debited to the checking account, it will be impossible to balance. Fortunately, it is possible to fix it if you make this mistake.
The name of the batch is similar to the names of checking account deposits, but with the suffix letter P should be used. Use the procedure described in Choosing a deposit number and use the letter suffix P. So a PayPal deposit on Memorial Day 2013 would be given the ID D130514P.
Each transaction processed by PayPal is assessed a fee, and this fee should be entered into Peachtree along with the items sold. Those fees are in place of the normal credit card fees.
Money is moved from the PayPal account to our normal checking account by requesting a check or an electronic transfer. That transfer amounts to a deposit into our main checking account, and it can be given a deposit number ending in Z. Use customer ID Internal crosscharge, change the Cash Account field to our normal checking account, use sales item Misc., and enter the amount of the transfer, and use the Journal menu in Peachtree to change the account from which the money is coming to AS-PayPal.
When money is transferred from PayPal to our checking account, it is done electronically via direct deposit. The transfer is initiated on the PayPal website, and it can be done by the Treasurer or by the ecommerce clerk. In either case, a copy of the transaction should be printed, and then used to document it as a deposit into the checking account.
In order to be able to reconcile the bank account, the transfer needs to be recorded as a deposit. In Peachtree, process the transfer as a direct deposit, using the customer ID PayPal Sales. Use the Journal menu item to change the account credited to AS-PayPal, and the account debited ("Cash account") to the main checking account. Use a Misc item to record the amount of the transfer, and indicate the payment method as Direct Deposit. The deposit number should have suffix X.