Want to receive payments online?

Online payments make it easy for your customers to pay straight from their online invoice using Visa, MasterCard, AMEX or Bpay, and automatically records the payments on your Essentials business file . The payments are automatically recorded in <product name?> - so you can spend less time chasing payments and updating your books.

See Online payments for sign up details.

Task 1: Create a PayPal bank account

A PayPal bank account is required, against which you can record PayPal sales. This account will show you the balance owed to you by PayPal (or the balance you owe PayPal). It can be used like a normal bank account for making payments from or recording transfers to other accounts. Unfortunately at this stage, the PayPal account can't be setup set up with bank feeds. To create this account in MYOB Essentials Accounting, complete the following:

1. Click your business name and choose Accounts List. The Accounts List page appears.
2. Click Add new Create account.
3. Leave the Account category set to Detail account.
4. For the Account Typetype, select Banking.choose Bank.
5. For the Parent header, choose the header account under which this new account will sit. If you're unsure which to choose, check with your accounting advisor.
6. Enter a Account Numbernumber that suits your account list.
7. For the Account Namename, enter "PayPal Bank" or similar.
8. Select the applicable Tax Rate/GST Typecode. If you're unsure which to choose, check with your accountantaccounting advisor.
   Here's our example:
   
9. Click Save.

Task 2: Create a PayPal clearing account

This account is required to record the PayPal fees against. To create this account, complete the following:

1. Click your business name and choose Accounts List. The Accounts List page appears.
2. Click Add new Create account.
3. For the Account Type, select Banking.
4. Enter an Account NumberLeave the Account category set to Detail account.
5. For the Account type, choose Bank.
6. For the Parent header, choose the header account under which this new account will sit. If you're unsure which to choose, check with your accounting advisor.
7. Enter a Account number that suits your account list.
8. For the Account Namename, enter "PayPal Clearing" or similar. You can also specify a Short Name such as PayPal or similar.
9. Select the applicable Tax Rate/GST Typecode. If you're unsure which to choose, check with your accountantaccounting advisor.
   Here's our example:
   Image Modified
10. Click Save.

Task 3: Create an expense account for the PayPal fees

This account is required to record the PayPal fees as an expense to your business. To create this account, complete the following:

1. Click your business name and choose Accounts List. The Accounts List page appears.
2. Click Add new Create account.
3. Leave the Account category set to Detail account.
4. For the  Account Type Account type, select choose Expense.Enter an Account Number
5. For the Parent header, choose the header account under which this new account will sit. If you're unsure which to choose, check with your accounting advisor.
6. Enter a Account number that suits your account list.
7. For the Account Namename, enter "Merchant Fees" or similar.
8. Select the applicable Tax Rate/GST Typecode. If you're unsure which to choose, check with your accountantaccounting advisor.
   Here's our example:
   Image Modified
9. Click Save.

Task 4: [Optional] Create a

contact for the PayPal fees

When you record the PayPal fees using a Spend Money spend money transaction, it's a good idea to allocate the transaction to a supplier. For this reason a supplier card needs to be created.

To do this:

contact. Here's how to create a contact for PayPal.

1. Go to the Contacts menu and choose Create contact.
2. For the Contact type, select Supplier.
3. For the Designation, select Company.
4. In the Company name field, enter "PayPal" or similar.
5. Enter a Contact ID—this is a unique alphanumeric code to identify this supplier, such as SUP0001.
6. Click Save.

Task 5: Record the sale

Record the sale for the customer as per normalyou normally would (need a refresher?). In our example below, a sale for $100 has been recorded for a customer who is paying through PayPal. 

Task 6: Receive the payment

When payment for the sale is received it comprises the net payment you will receive for the sale, plus the PayPal fees. In our example the total sale is $100 which comprises a net sale value of $98 plus a $2 PayPal fee. This is recorded using a customer payment for the full amount to the PayPal clearing account, and then a Receive Money receive money transaction for $98 to the PayPal account from the clearing account.

To record the payment for the sale:

1. On Go to the Sales menu , click Take and choose Invoice payment. The Take payment page appears.
2. In the From Customer field, select the applicable customer. The list of invoices open against that customer appears.
3. In the Into account fieldDeposit into field, select your the PayPal clearing Clearing account you created earlier.
4. Enter a Description for the payment.
5. In the Total amount Amount received field column, enter the full amount the customer paid (including fees). Also enter this amount into the Payment amount column next to the invoice. See our example below.  
   
6. Click Save.

And here's our example of the Receive Money transaction, which you view via Banking > Receive MoneyTo record the receive money transaction

1. Go to the Banking menu and choose Receive money.
2. In the Bank account field, choose the PayPal Bank account you created earlier.
3. In the Contact field, select the customer.<is this right?>
4. Enter a Description of transaction.
5. Select whether the amounts are Tax inclusive or Tax exclusive.
6. In the Account column, choose the PayPal Clearing account.
7. In the Amount field, enter the sale amount minus the PayPal fee.
8. Choose the applicable Tax code. If unsure, check with your accounting advisor or the ATO.
9. When you're done, click Record. Here's our example:
   Image Modified

Task 7: Record the PayPal fees

You can now record the PayPal fees using a spend money transaction. This will clear the money from the PayPal Clearing account and allocate it to your PayPal Expense account.

1. On the Banking menu, click Spend money. The Spend Money page appears.
2. In the Pay from field, select your PayPal clearing account.
3. [Optional] In the To field, select the PayPal contact.
4. In the Allocate to coulmncolumn, allocate the transaction to the PayPal expense account.
5. In the Amount column, enter the PayPal fee. See our example below.
   
6. Click Save.

<h2><i class="fa fa-comments"></i>&nbsp;&nbsp;FAQs</h2><br>

Can I set up a bank feed on my PayPal account?

Currently you can't set up a bank feed directly from a PayPal account. But there are a few ways PayPal payments can be managed. One way is to link your PayPal account to a bank or credit card account. If you have a bank feed set up for that bank or credit card account, then all transactions, including the PayPal ones, will show in that bank feed.

For more information about PayPal payment methods, see the PayPal website.