[GNC] Buying with PayPal - how do I split the transaction?

[David Cousens]

David

I treat my Paypal account as a Liability account, just as you would treat
purchases with a credit card. Mine is linked to a bank account from which funds
are automatically transferred to keep the balance in the PayPal account at 0. (
I no longer accept payments through it and only use it for purchases). I also 
don't use the business features anymore. 

To use the business features, so you have the vendor record, I would have a
separate PayPal Liability account. On purchase record the bill to  credit
Accounts payable and debit the appropriate expense account as normal. To record
PayPal paying the vendor, debit the Accounts Payable and credit the Paypal
Liability, essential make a payment from the Paypal Liability account.  I don't
know if the account checking on the business features payment process will
prevent this or not.  

Then to record the transfer of funds from your bank account to Paypal credit the
bank account and debit the Paypal liability account.

David Cousens

On Fri, 2022-12-09 at 20:00 +0000, Dr. David Kirkby wrote:
> I have the following accounts, and am buying something in GBP.
> 
> Assets -> Accounts  Receivable -> GBP
> Assets -> Bank account
> Assets -> PayPal -> GBP
> Expenses -> Utilities -> Internet
> Liabilities -> Accounts Payable -> GBP
> 
> I paid Google £15 for using some cloud storage (OneDrive) using PayPal. So
> PayPal took the money from the bank account and paid Google.
> 
> *If I were NOT using PayPal, this is the process I would go through.*
> 
> *Under Business -> Vendor -> New Bill*
> Create a bill and post that to these accounts
> *Expense Account:* Expenses -> Utilities -> Internet
> *Post to Account: * Liabilities -> Accounts Payable -> GBP
> 
> *Under Business -> Vendor -> Process Payment*
> Process the payment
> *, using these accounts*
> *Post to*: Liabilities -> Accounts Payable -> GBP
> *Transfer Account:* Assets ->  Bank account
> 
> Am I doing that all correctly done, if not using PayPal ?
> 
> Assuming that is, how can I modify the process so the  account* Assets ->
> PayPal -> GBP* account gets used?
> 
> Dr David Kirkby Ph.D
> Email: drkirkby at kirkbymicrowave.co.uk Web:
> https://www.kirkbymicrowave.co.uk/
> Kirkby Microwave Ltd (Tel 01621-680100 / +44 1621-680100)
> Stokes Hall Lodge, Burnham Rd, Chelmsford, Essex, CM3 6DT.
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