Paypal and Credit Memos

Posted by pggolf on July 6, 2006, 8:21 pm

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I currently use Paypal to accept payments for a golf tournament. I
found a posting in this group that told me to set up a mirror bank
account called "Paypal Checking", and then when I receive a Paypal
payment on an invoice, and want to deposit those funds from A/R into my
Paypal checking, that I enter a line item Expense called "Paypal Fee"
and enter a negative number that corresponds to the Paypal fee. That
seems to be working great!

Now, I have a situation where I need to issue a Credit Memo and a
Refund via Paypal for an Invoice I received. Specifically, I have an
Invoice for $895.00 I deposited to my Paypal checking account $868.74
(which is less the $26.26 Paypal fee that I entered as an
Expense>Paypal Fee). I want to refund the customer $868.74, since it
has been more than 60 days since the transaction date, and paypal won't
let me refund entire $895.00. But when I create the Credit Memo and
enter the item I wish to refund, it defaults to the full $895.00, and I
can't seem to modify it to the $868.74.

What is the best way to proceed?