PayPal fees on the invoice

[DorotaT]

Our client asked us to specify PayPal fees (which we charge them for payment through PayPal) on the invoice.
When posting the invoice we treat it as reimbursement and record it as currency charges in SAGE instant accounts nominal code, as we pay the charges on money we receive.
Or should we treat it as income and it should be recorded in the SALES nominal ledger?
Please advise.

 

[StevensOnln1]

You treat it as income and charge VAT on it at the same rate as the rest of the invoice if you are VAT registered.

 

[DorotaT]

Would you create a separate nominal ledger in SALES for it?

 

[MyAccountantOnline]

Our client asked us to specify PayPal fees (which we charge them for payment through PayPal) on the invoice.
When posting the invoice we treat it as reimbursement and record it as currency charges in SAGE instant accounts nominal code, as we pay the charges on money we receive.
Or should we treat it as income and it should be recorded in the SALES nominal ledger?
Please advise.

Its income and I'd include it in sales

 

[David Griffiths]

Would you create a separate nominal ledger in SALES for it?

That's entirely up to you. If you need to track it separately, create a separate ledger code. If you don't, don't.

 

[DorotaT]

Another question: would you then set up nominal ledger for PayPal fees - as COST OF SALES on COA?

 

[David Griffiths]

No, because paypal fees aren't cost of sales