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gonetravellingpr
Level 1

How do I match a payment transfer from paypal to my bank where the sent amount and received amount are different due to paypal taking a fee from sent amount?

I sent USD from my paypal account to my personal USD bank account but due having a UK paypal account, I had to pay a fee. I want to match the transactions on my bookkeeping page but the amount sent from paypal includes the fee, and so the amount received is different. E.g. On my transactions page I have three transactions to categorize. In one account is the $1000 sent, and the $30 fee, and in my other account is the $970 received. How do I match all of these to categorize them? I hope that makes sense and thank you!  
1 REPLY 1
ReymondO
Moderator

How do I match a payment transfer from paypal to my bank where the sent amount and received amount are different due to paypal taking a fee from sent amount?

Good day, @gonetravellingpr

 

I'd be glad to share insights on how we can categorise transferred transactions in QuickBooks Online (QBO). Normally, we can simply match a transfer in your Banking feeds if the downloaded transactions are having the same amounts. 

 

Since your downloaded transactions don't have the same value, we can perform a series of steps to match them in both accounts. 

 

To start, let's record the transferred payment using the Transfer feature in QuickBooks. Here's how:

 

  1. Click +New and select Transfer.
  2. In the Transfer Funds From drop-down list, select your PayPal account.
  3. In the Transfer Funds To drop-down menu, choose an Undeposited Funds account. We need to use this account since the payment from PayPal to the receiving bank is still in progress.
  4. Enter the amount.
  5. Make sure to select the correct Date.
    Select Save and close.

 

Once done, create a Bank deposit. Check the box of the transferred transaction in the Select the payments included in this deposit section. In the Add funds to this deposit area, create a fee account and record the fee from this column. (Please reach out to your accountant if you need help in creating an account to track fees in QuickBooks.)

Once done, you can now match each transaction to your PayPal and personal accounts in QuickBooks. With regards to the downloaded fee in your PayPal account, I'd suggest excluding this since the fee was actually deducted from your personal bank. 

 

You can always add your reply to this thread if you need further help in handling your downloaded transactions. Have a good one.

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