Paypal transaction split confusion

[trythis]

Mike or Penny Novack-2 wrote
> On 4/16/2016 4:58 PM, trythis wrote:
>> That helped!
> 
>> I made an invoice for 12 items at $5 each and apply a payment for each
>> paypal transaction but since part of the money is lost to paypal fees the
>> invoice will not be completely paid, so not sure how to handle that.
>> If the donor wanted a receipt it would show an incomplete payment which
>> isn't true, and I think we have to show any fees that reduce the
>> donation,
>> not sure.
> Look, this ISN'T really a gnucash question << your problems are with the 
> fundamentals of accounting  -- and tax law in addition >>
> 
> Your donor made a donation (to your organization) of $5. The fact that 
> your wildcat bank charges you a fee for deposits being made to your 
> account is YOUR expense (an overhead expense, "bank charges"). While I 
> don't know of any (real) banks charging for deposits these days, when I 
> was young there most certainly  usually was  a fee per check deposited 
> which banks began dropping about the time I got old enough for my own 
> checking account.
> 
> There may be other overhead expenses associated with receiving a 
> donation. Suppose your organization sends out acknowledgement letters. 
> Do you think you should be deducting the cost of the stationary, the 
> stamp, even a proportion of the pay of an employee tasked with creating 
> and sending these letters out?
> 
> Michael D Novack
> _______________________________________________

Paypal  and Square are payment processing companies, but paypal functions
like a bank and charges for every transaction you receive just like a credit
card company does for retailers.  It allows anyone to sell stuff without the
hassle of setting up a business account with VISA and Master Card, etc.

That's the nature of the email based payment system.  

The problem seems to be that when I apply the transaction to an invoice the
account split takes the paypal fee out because the invoice is crediting the
accounts payable which is connected to the income account.  If I keep the
paypal fee out of the split and make a separate transaction just for the fee
I get accurate invoicing but the fee is not deducted as a fee from that
special event or program, its just a basic bank fee.  I could make paypal a
vendor and make every single paypal fee a Bill but holy moly thats too much
work.




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