YNAB You Need A Budget

[stephaniesherie]

For those of you who get paid via paypal, how do you account for the pay pal fees?

I do account for it at the end of the year by taking it off taxes so that was never an issue.

However, not that I"m doing YNAB, my paypal account isn't lining up with my YNAB account because of the fees. UGH! Do I need to just make a transaction in the paypal(YNAB) account to show it?

Lo and behold - another way my head was in the gutter! I just kept adding the full payments in and somehow not even accounting for the paypal fees!!

[miranda99]

We don't use YNAB for our business that gets paid through paypal, but we started entering paypal as a separate checking account, so the income still shows as the full amount, then we enter an expense in that checking account that goes into a category called "bank fees" since paypal fees are basically banking fees.

You can set up a separate checking account and call it paypal in YNAB, then when you withdraw the money from paypal, you could use the transfer function in YNAB to move that to your regular account. It'd need to be an on-budget account.

I'm no YNAB expert, but something like this set up might work. Hopefully others with more experience will answer.

[jesse]

When I do the books for my paypal account, I use the monthly financial statement report and that shows you everything gross, then gives you one area to show you their fees. Balances out very nicely. That report is a life saver.

[WairereRose]

I show the net receipt as the amount into the account, the gross payment as the received on one split line and the fee on its own split line in a split transaction so that the net result is the net receipt.