For all of you that have your PayPal account connected in your QuickBooks Online account, you may have recently spotted that you had a banking error code when you attempted to update the account. Most of our clients were getting the '324' error code. This has since disappeared and you are now able to update your PayPal account once more.
However ... I believe QuickBooks and PayPal have updated the way in which the transactions are currently pulling through into the system and it is in fact pulling in data incorrectly.
The error is currently that the old feed (before the banking error/update) used to pull through the gross income and a separate expense for the fee. The new feed is now pulling through net income (which has already taken off the fee) and another expense for the fee – effectively charging for the fee twice!
QuickBooks are aware of the situation and are working to rectify this issue as quickly as possible. In the mean time I have emailed all of my clients with a workaround until this is the case (as QuickBooks could not give me a time frame as to when this will be resolved).
To work around in regards to income:
1. Within your PayPal account in the banking section of QuickBooks Online: Click on the income side of the transaction and select the 'Split' feature.
2. You will need to mark up the income to gross in one line allocating it to your normal PayPal income account. This should leave a difference in red of the fee amount.
3. In the second line you will need to enter the fee as a minus figure allocating this to the normal PayPal fee expense account.
You can see in the below image. The original sale was for £500 and the fee was £17.20. The amount that had actually pulled through into the For Review section was £482.80.
4. Once you have added this transaction, you will need to exclude the expense for the fee from your banking.
I hope QuickBooks resolves this issue quickly, but if they don't this work around will be effective, albeit a little more time consuming.
If anyone has any questions please do not hesitate to get in touch with myself directly.
Welcome to the Community.
I have looked into this particular investigation for you and I can see that this has been resolved. Are you still experiencing this particular issue?
This issue is now resolved. It does however mean that there may be certain transactions within a certain time frame that may require the work around.
I had only just started reconciling the transactions at the time so didn't know if the issue had been fixed but having now brought the Paypal transactions up to date, I can see that the issue has been resolved and only involved a few days.