Paypal or not Paypal need some advice please

[bambinou]

Hello,

My wife and I,has always be doing the accounts this way, I need a bit of advice please as I do not want to set Manger in the wrong way from start.
Main Bank account in EURO
Paypal USD
Paypal GBP
Paypal EUR

The way I currently do it is:
Money comes in the Paypal USD, I create a transfer in my Main bank in Euro and calculate the gain/losses for that day. But I have to do this for every single transaction, it is a long process as many of my sales are no more than 0.89 Eur(Songs).

Once an accountant told me, why do you bother inputting all the Paypal receipts when you can simply transfer all the money to your main bank account once per month and only register this once per month.

Another accountant told me, “you should register all the Paypal sales and transfer them one by one in your main bank account”

Now the question is, which way would you go please in manager because I have to admit, the Paypal inputting is annoying and slow…

Let’s say I listen to the first accountant and move the balance once per month, file all my receipts, I see multiple problems here…

Thank you.

[Brucanna]

I would compare you to a café, they sell 100 cups of coffee per day, they don’t record each coffee cup sale.

On the basis that each PayPal account is a cash register.
I would take up the total daily sales once per day for each PayPal account.
So if the cash register receives 125.67 on a day, that total becomes the cash sales entry for that day.

Then I would only do an actual transfer to the main account once per week (or any other timing) and record that transaction.

[bambinou]

I see, it is tough…I receive money from 15 sources(micro payments).
The problem is because of the MOSS in Europe, you have to charge the V.A.T of the buyer´s country, and paypal won’t work this way so the ecommerce I use sends the whole amount to Paypal(paypal is unaware of the V.A.T amount).
Each month I then have to manually go through each ecommerce invoice and input the amount manually in order to get the right amount of vat in the software(which was Xero).
I find this process incredibly difficult…

Today I tried to import the transaction manually into manager but there is a problem, I cannot work out how to export from Paypal each currency.
When I choose a currency it sends me on a report page where I can download the report but all 3 currencies keep getting added together, anyone experiencing this please?

Thanks

[Brucanna]

@bambinou

I cannot work out how to export from Paypal each currency.

For this you need to talk to PayPal, or open three separate unconnected PayPal accounts.

@bambinou

Each month I then have to manually go through each ecommerce invoice

Can you export / import the ecommerce for a period (month) to a spreadsheet with the breakdowns.
Once again, talk to the ecommerce with regards to what summary reports that they produce.

[bambinou]

Thanks Brucanna, I will check this out with Paypal, for the ecommerce I know it will be too much of a pain to change the system as the V.A.T rules change all the time…nightmare.

[Brucanna]

@bambinou

for the ecommerce I know it will be too much of a pain

But surely they can summarise the past Invoices with breakdowns for a period, like issuing a statement.
Perhaps an opportunity to review ecommerce suppliers.

For PayPal, what if you just had the account as Euro, without having the other sub-currencies

[bambinou]

Thanks for the trick, I am not really sure why Paypal has separated my account into multi currencies to be honest, that was done alone when the payments started to be received. Do you think there is a way to remove all the other currencies and receive everything into Euro from US or UK people?

And for the ecommerce unfortunately , in my type of market(royalty free music) there is only a tiny fraction of ecommerce available.

Thanks

[Brucanna]

@bambinou

Do you think there is a way to remove all the other currencies and receive everything into Euro from US or UK people

Another question for PayPal

[bambinou]

ok thanks. I don’t think it is possible but will still ask.

[bambinou]

Ok hope this helps someone…

In order to use the multi-currency feature the right way:

Go to this page on Paypal(login first)

Log in to your PayPal account

Download the report in CSV format by setting up your start and end custom date.

When you open the mixed up statement(all the currencies will be on this single statement) using excel, open office, libreoffice or others, make sure you set the settings(in my case with libreoffice) to:

When the page is open, you will notice that all your currencies are organized in this way:

All you have to do now is delete all the rows of one currency, in this case, I will delete all the USD and only keep the EURO. Make sure you keep the first line on this sheet intact(those are your column names).

Warning: Make sure you delete the rows on the left and not just the content.

Do not leave any blank spaces between the column titles and your currency, when this is done save the new sheet with different names, in my case:
euro.csv
usd.csv
gbp.csv

Create multiple cash accounts called:
Paypal EURO
Paypal USD
Paypal GBP

Choose the account you wish to import the Paypal statement to and click on the right side number:

On the next page click on “Import statement”

Choose each individual csv files according to your account currency, job done.
Now if you have any transfers between your paypal and your main account, you will have to do them manually.

[Brucanna]

Ok, so if you have three PayPal currencies, you need to open the downloaded report three times and delete the not required currencies three times and save the file three times.

So when you write “when this is done save the file back”, wont you need to do a - save as - under a new file name (PP EURO Mar) otherwise if you save over the downloaded file, it wouldn’t be available for the other currencies.

[bambinou]

Yes sorry, I have changed the wording. thanks.