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Dealing with transactions from a Paypal bank account to my current account

I have recently sold a couple of assets in paypal. Previously I had transfered (through paypal) the amount of each sale to my bank account. From there imported them into quickbooks as sales.

However, I decided to add paypal as a bank account and now I am confused as to what steps I should take. I seems logical to add all the sales and expense from the paypal account. But how do i deal with the transfer of funds from paypal to my account. Do i define the item as transfer my Paypal account? If so what happens to the amount in my bank account? Is that also a transfer?

Thanks for any help. 

Best answer 02-06-2019 07:12 PM

Accepted Solutions
QuickBooks Team

Hi scott. Thank you for contacting Community. Essen...

Hi scott.


Thank you for contacting Community.


Essentially you would record the transactions as a Transfer between the PayPal account and the Bank account. If you are doing this through the Banking page, you could just click on the transaction in review and change the type to transfer, this would then allow you to select the account that the payment was being transferred to (or from depending on which transaction you select ) and click transfer.


If you aren't doing it through the Banking page you could click on the (+) icon in the top right hand corner of the page and select Transfer. Again, on this page you would just select the account that you were wanting to transfer the money from and where it is being transferred to.


This would show the balance of your PayPal account decrease and the balance in your Bank account Increase as the money is moved from one to the other.


Let me know if you have any queries. Or, if you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours.



11 REPLIES 11
QuickBooks Team

Hi scott. Thank you for contacting Community. Essen...

Hi scott.


Thank you for contacting Community.


Essentially you would record the transactions as a Transfer between the PayPal account and the Bank account. If you are doing this through the Banking page, you could just click on the transaction in review and change the type to transfer, this would then allow you to select the account that the payment was being transferred to (or from depending on which transaction you select ) and click transfer.


If you aren't doing it through the Banking page you could click on the (+) icon in the top right hand corner of the page and select Transfer. Again, on this page you would just select the account that you were wanting to transfer the money from and where it is being transferred to.


This would show the balance of your PayPal account decrease and the balance in your Bank account Increase as the money is moved from one to the other.


Let me know if you have any queries. Or, if you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours.



Active Member

Thank you. I wasn't sure whether both entries would be se...

Thank you. I wasn't sure whether both entries would be set to transfer. Once I selected the paypal entry as transfer and confirmed the entry in my bank was automatically matched and set to transfer also. Perfect.
QuickBooks Team

No worries, any questions please feel free to drop us a m...

No worries, any questions please feel free to drop us a message Smiley Happy
Not applicable

Hi there, i am dealing with the same thing. Income receiv...

Hi there, i am dealing with the same thing. Income received through PayPal, transferred to Checking. I marked the transfer but i feel like i am missing the part where i book the income entry. Can someone help with that part?
Established Member

Re: Thank you. I wasn't sure whether both entries would be se...

Hi there - I am having this very same issue.  So should you enter all your PP transactions first and then reconcile those before you reconcile your bank accounts??  I have all my transactions recorded from PP - (aka transfers) but those are NOT reconciled and have my bank transactions recorded and those are reconciled - so now my Bank account is show double the amount and this has me totally confused on how to handle from here... please advise next steps.  Thanks

QuickBooks Team

Re: Thank you. I wasn't sure whether both entries would be se...

Hi alex13 and TKA,

 

Let's work on with your PayPal transactions.

 

You can add them to QuickBooks, so you can assign an income account. Or, match them to you invoices or sales receipts if you've already created them in QuickBooks. Then, you can create fund transfers from PayPal to your bank account, so when your connected bank downloads your transactions, you can Match them with your transfers.

 

Please continue posting here if you have more questions.

 

 

 

Established Member

Re: Thank you. I wasn't sure whether both entries would be se...

Maybe I did not communicate what I was trying to say.  Entering from PP as a "Funds Transfer" and having the bank account recognize it as a "Deposit" - makes it a double entry.  But it is truly not - b/c you are transferring from PP to the Bank. 

So what is the best way to reconcile both the bank and PP where you in essence have double transactions that are the same thing?

 

Thanks

 

QuickBooks Team

Re: Thank you. I wasn't sure whether both entries would be se...

Hello there, TKA.

 

You'll reconcile them normally. You'll compare the balance and transactions in QuickBooks Online with your monthly bank statement.

 

You can always check this article for reference: How to reconcile accounts.

 

If you need more help, just get back to this thread.

Frequent Explorer *

Re: Thank you. I wasn't sure whether both entries would be se...

So if an expense is paid through PP with a credit card, we create a transfer from credit card to PP. Do we also create the same expense in the credit card? 

I'm trying to enter all data from paypal and credit card statements but am worried that I'm creating 2 expenses for 1 expense. 

 

When I create the transfer entry from credit card to paypal it is not showing up as an expense in the credit card entries. Which is where my confusion is coming from. 

QuickBooks Team

Re: Thank you. I wasn't sure whether both entries would be se...

If you are creating an expense as well as a transfer this could look like a duplication.

You should only be creating a transfer as this shows the balance coming from your Credit Card account. Its not classed as an expense as its transferred to your PayPal account.

This is the correct process to follow creating expenses will create a duplication.

 

Hope this helps with you.

 

Thank you.

Frequent Explorer *

Re: Thank you. I wasn't sure whether both entries would be se...

Yes. Thank you. That helps.