Invoices/Receipts and PayPal fees

Wm wm+gnc at tarrcity.demon.co.uk
Sat Jan 31 12:01:43 EST 2015


Sat, 31 Jan 2015 13:36:09 <54CCDA49.3010607 at babrees.co.uk>  Jill Terry 
<jill at babrees.co.uk>

>Thanks, also to Wm for his response.
>
>So, I'm doing this as suggested, entering direct into the bank/paypal 
>account, and this seems to have solved the problem.

You should be recording the transaction either as income or a change in 
your asset account.  Looking at the flow of money from the paypal (an 
expense) pov is arse about face.

aside: I think you got upset with me using rude words, does the above 
seem appropriate in context to you?

> However, when I have a lot of cheques to pay into the bank, what is 
>the best way to do that.

Depends if cheques written generally clear or not.

If they don't bounce as a rule your transaction is

Assets:bank                                1000
   Income:MembershipFees         10
   Income:Donations              99
   etc

For management reporting purposes you will, of course keep a record of 
the rare bounced check and members that promised to pay but haven't (the 
legal bit in England and Wales is different to Scotland and the various 
states in the USA differ amongst each other so their can't be a single 
rule) about this.

You and your trustees / auditor have to decide on your basis of 
accounting and are even allowed to mix it (though that is not 
encouraged).

Don't be fooled by what some American people say.  In the UK small (in 
terms of turnover) charitable organisations are allowed to report on a 
cash basis.

>Is it best to enter them into Assets > Accounts Receivable and then 
>once ready to pay in to the bank do a transaction from AR to bank?

I wouldn't do it that way.

If I am right about your practice I'd record each cheque received in 
some way but avoid gnc's formal Accounts Receivable, an ordinary
Asset:ChequesReceived as Tommy suggests is probably better.

You want to record cheques you haven't deposited or haven't yet cleared 
rather than debts owed, etc.

-- 
Wm...


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