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From Morten Jensen <mor...@citizenme.com>
Subject Re: How to record payment provider (e.g. PayPal) fees as operational expenses
Date Tue, 15 Dec 2015 08:41:14 GMT
Hi again,

I should probably add btw. that I had a look at the PayPalServices.java and
PayPayEvents.java files for inspiration on this. I notice that the latter
retrieves the fee via String paymentFee = request.getParameter("mc_fee") -
but as far is I can make out that is just ignored, i.e. not at all used
later.

Thanks.
Morten

On Tue, Dec 15, 2015 at 8:18 AM, Morten Jensen <morten@citizenme.com> wrote:

> Hi,
>
> We are using PayPal to make and take payments but we are not using the
> PayPal gateway for payments and are instead using our own order and
> payments integration flow.
>
> We typically create an order of say £100 and once the client pays we
> generate the invoice. The problem is that we may only get e.g. £97 after
> paypal fees and we need to record the £3 as an operational expense (I have
> set-up GL account 709100 PayPal fees for this) while still invoicing the
> client for the £100 - after all, the client did pay £100 (and therefore
> order adjustments don't seem to cut it either?)
>
> Our business model prevents us from asking the client to foot the actual
> fees at buyer's end. Just like what would be the case on e.g. ebay etc.
>
> The problem we face is that only recording £97 prevents the order from
> being completed because there's £3 outstanding. Recording £100 means that
> our PayPal financial account will not reconcile because it doesn't reflect
> the reality that only a single £97 payment was made - instead we would have
> +£100 and a separate compensating transaction of -£3 on the financial
> account, which doesn't seem right either.
>
> I tried to create a manual GL transaction (and also got the code for
> automatic working in the same way) on the remaining £3 on the invoice id
> and payment id to 709100 - but it's not immediately clear to me what the
> account source should be.
>
> Could anyone shed any light on how to go about this?
>
> For reference, we will be integrating with many more payment providers
> that offer payments both ways over time; and therefore this is not just a
> PayPal integration issue for us in terms of recording fees.
>
> Thanks in advance for your assistance.
>
> Best regards,
> Morten Jensen
>
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