Three-way transaction, that I am not sure how to handle...

Jack Whale jackwhale at hotmail.com
Tue Sep 19 16:36:03 EDT 2006


Well, my ignorance of PayPal knows no bounds. I did my figurin based on how 
he appeared to use it.
So, if Paypal, in general, has a positive balance, let's
1) call it an Asset
2) leave a positive balance after rebate

Attached is another stab.



>From: "Dawning Sky" <the.dawning.sky at gmail.com>
>To: "Jack Whale" <jackwhale at hotmail.com>
>CC: heller at deepsoft.com, gnucash-user at gnucash.org
>Subject: Re: Three-way transaction, that I am not sure how to handle...
>Date: Tue, 19 Sep 2006 10:04:47 -0700
>
>On 9/19/06, Jack Whale <jackwhale at hotmail.com> wrote:
>>In that case, and again I'm no accountant, I would enter it as shown in 
>>the
>>screenshot that I have attached.
>>
>
>Two questions:
>
>1. Why do you treat paypal as a liability.  It's more like an asset in
>my opinion.
>2. I suppose what paypal does is that it first draws from the bank
>account $100, and then credit $1 rebate to the paypal account.
>
>DS
>
>
>>jw
>>
>>
>> >From: Robert Heller <heller at deepsoft.com>
>> >To: "Jack Whale" <jackwhale at hotmail.com>
>> >CC: gnucash-user at gnucash.org, Robert Heller <heller at deepsoft.com>
>> >Subject: RE: Three-way transaction, that I am not sure how to handle...
>> >Date: Tue, 19 Sep 2006 07:00:17 -0400
>> >
>> >At Mon, 18 Sep 2006 17:05:11 -0700 "Jack Whale" <jackwhale at hotmail.com>
>> >wrote:
>> >
>> > >
>> > > Nor am I an accountant.
>> > > I was wondering, though, whether PayPal does this all at once with 
>>each
>> > > transaction or if it draws out of your checking account and pays the
>> >rebate,
>> > > say, once a month(or week, or day)?
>> >
>> >They record it as three sucessive transactions, for each debit card
>> >usage.  I guess if I had a suffiencient balance in my PayPal account, it
>> >would only be two transactions.
>> >
>> > > jw
>> > >
>> > > >From: Robert Heller <heller at deepsoft.com>
>> > > >To: Gnucash <gnucash-user at gnucash.org>
>> > > >Subject: Three-way transaction, that I am not sure how to handle...
>> > > >Date: Mon, 18 Sep 2006 19:34:12 -0400
>> > > >
>> > > >I recently set myself up with a PayPal Debit card, which I am using 
>>to
>> > > >pay for recurring business expenses.  Because I also have a PayPal
>> > > >button on my web site, I am getting 1% cash back.
>> > > >
>> > > >I generally don't carry a balance on my PayPal account, so the funds
>> >are
>> > > >drawn from my (business) checking account as a 'backup funding 
>>source.
>> > > >
>> > > >Now what happens is this: PayPal performs three transations:
>> > > >
>> > > >1) Pays the charge.
>> > > >2) Transfers the needed amount from my checking account to cover the
>> > > >charge.
>> > > >3) Awards the cash-back amount to the PayPal account.
>> > > >
>> > > >Right now, I have two regular transactions, a transfer from my 
>>checking
>> > > >account to the PayPal account and a transfer from the PayPal account 
>>to
>> > > >the payee (I have not put in a transaction for the cash back yet).
>> > > >
>> > > >Does it make any sense to bundle the whole transaction sequence as a
>> > > >split transaction?  Or should I just have three transactions? If the
>> > > >former, I am not totally sure what the split transaction will look
>> >like.
>> > > >
>> > > >--
>> > > >Robert Heller             -- 978-544-6933
>> > > >Deepwoods Software        -- Linux Installation and Administration
>> > > >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
>> > > >heller at deepsoft.com       -- Contract Programming: C/C++, Tcl/Tk
>> > > >
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>> >
>> >--
>> >Robert Heller             -- 978-544-6933
>> >Deepwoods Software        -- Linux Installation and Administration
>> >http://www.deepsoft.com/  -- Web Hosting, with CGI and Database
>> >heller at deepsoft.com       -- Contract Programming: C/C++, Tcl/Tk
>> >
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