Accounting for PayPal transactions

[Archangel]

I sell products via PayPal. When entering the transactions in my books (MYOB), should I enter the receipt to the undeposited funds account, then manually transfer it to my PayPal account with the PayPal fee offset? Or is it OK to have the receipt go straight in to the PayPal account and then debit the PayPal account once a month with the total PayPal fees paid for the month?

Hope that makes sense!

Thanks

 

[DIY Accounting]

The paypal receipt should be recorded gross before the fee deduction and the fee entered separately as an expense.
You can download the paypal transactions into an excel spreadsheet and then sort the transactions for entry into your accounting records.
For example after producing your excel spreadsheet of the receipts and fees, sum the total fees paid and enter as one expense item with the excel sheet as the supporting evidence of the transaction.

 

[Archangel]

Thanks for the prompt reply. Much appreciated.

 

[DuaneJackson]

The paypal receipt should be recorded gross before the fee deduction and the fee entered separately as an expense.

We have an automated PayPal Import service that they've certified. The approach we take is as Terry suggested.