How to bookkeep a sale

[TommyGG]

We sell online via Paypal, whenever our Paypal balance reaches say £200 we transfer it to our bank account. The Paypal fees have already been taken, let's say actual sales were £210, minus £10 fees and we withdraw £200 to our business bank account.

Can I simply list £200 sales as one transaction? Or is it best to keep a record of every individual transaction?

 

[johndon68]

I'd record a sale of £210 and the fee of £10 as an expense.

John

 

[Truemanbrown]

We sell online via Paypal, whenever our Paypal balance reaches say £200 we transfer it to our bank account. The Paypal fees have already been taken, let's say actual sales were £210, minus £10 fees and we withdraw £200 to our business bank account.

Can I simply list £200 sales as one transaction? Or is it best to keep a record of every individual transaction?

Firstly, I would record the sales, based on the figures above, as such:-

Dr Bank--------------------------200.00
Dr Paypal Charges-----------------10.00
Cr Sales---------------------------------210.00

Second, it would be better to record every transaction but if you have a list of sales (like a sales day book) then there is nothing to stop you posting the total figure.

 

[MyAccountantOnline]

We sell online via Paypal, whenever our Paypal balance reaches say £200 we transfer it to our bank account. The Paypal fees have already been taken, let's say actual sales were £210, minus £10 fees and we withdraw £200 to our business bank account.

Can I simply list £200 sales as one transaction? Or is it best to keep a record of every individual transaction?

Have you ever looked at software which enables you to import PayPal transactions - it can be a huge time saving.

One (of many) which includes this feature is Accounts Portal - might be worth a look.

 

[lovingit]

Firstly, I would record the sales, based on the figures above, as such:-

Dr Bank--------------------------200.00
Dr Paypal Charges-----------------10.00
Cr Sales---------------------------------210.00

Second, it would be better to record every transaction but if you have a list of sales (like a sales day book) then there is nothing to stop you posting the total figure.

im curious about something...

paypal charges vary directly with the amount an item sells for isnt that right? so why would it not be treated as a cost of goods sold? i know both expenses and cogs are both debit but for profit and loss account...?

 

[Scalloway]

Treating paypal charges as a cost of goods sold reduces the gross profit percentage. Anyone (such as HMRC) comparing your business with another similar one that doesn't use paypal may become suspicious.