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

David Cousens davidcousens49 at gmail.com
Fri Dec 9 20:37:29 EST 2022


Michael

You are right but I just find it convenient to reconcile the Paypal account
against my statement from them  and my bank account against the statement from
the bank, rather than having to find the payments to Paypal 
in my bank account records. I could just as easily use an asset account with
reversed debit credits of course. My bank account records don't have a
description of the purchase whereas the Paypal records do. Makes it easier to
select the appropriate expense account to assign a particular purchase. The
additional work in maintaining the Paypal account offsets any extra work in
having to match the amounts in the bank records to receipts to identify the
appropriate expense account.

I was assuming David Kirby was wanting to use the business features to maintain
a trail to the vendors
On Fri, 2022-12-09 at 20:19 -0500, Michael or Penny Novack wrote:
> On 12/9/2022 7:01 PM, David Cousens wrote:
> > 
> > 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.
> 
> OK, while you HAVE a "Paypal Account" it appears that in this case 
> Paypal is being used just as an agent << not unlike when I purchase 
> something online  paying with a credit card and the vendor is using 
> Paypal as the agent >>
> 
> So your transaction could simply be debit the expense and credit the 
> bank account.
> 
> However, I do NOT understand why you were treating your Paypal account 
> as a liability. AFAIK, Paypal does not offer credit. Look, people can 
> make on-line purchases with a credit card but also often with a debit 
> card. The former is a liability account, the latter is not. This sort of 
> thing is not "by company". This we would think of VISA as a credit card 
> (what they do) BUT they also issue debit cards << often given as gifts 
>  >> When you pay using a VISA credit card you are incurring  liability 
> but when paying with a VISA debit card (a gift card) you are paying with 
> an asset.
> 
> 
> Michael D Novack
> 
> 
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