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Anonymous
Not applicable

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. 

Solved
Best answer 02-07-2019

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.



View solution in original post

24 REPLIES 24
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.



View solution in original post

Anonymous
Not applicable

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.
Highlighted
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 :)
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?
Not applicable

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.

 

 

 

Not applicable

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. 

Not applicable

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

Similar concern: how do I deal with transactions made through PayPal's Credit Card? They are entering twice: once as an expense on the paypal account, and again as credit to that account via credit card services. The only problem is that credit is being received as business income. What should I do?

QuickBooks Team

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

Hello there, lpgraphix.

 

Thanks for joining this thread. Let me share some information on how to handle Paypal transactions that were entered twice.

 

Make sure you have a Credit Card on Chat of Accounts and Paypal Account as Cash on Hand. 

 

You can refer to this article on how to manage your Chart of Accounts in QuickBooks Online.

 

On the other note, if the Paypal takes money from your Credit Card, then you'll need to create a Bank transfer from your Credit Card going to your Paypal Account.

 

Here's how:

  1. Click the Plus icon.
  2. Choose Transfer.
  3. Choose the correct Credit Card for the Transfer Funds From and choose the Paypal Account for Transfer Funds To.
  4. Enter the necessary information.
  5. Click Save and close.

However, if your Paypal pays something for the business, then you create an Expense transaction use Paypal account as the Payment account.

 

Here's how:

  1. Click the Plus icon.
  2. Under Suppliers, click Expense.
  3. Enter the necessary information.
  4. Click Save and close.

If there's anything else that I can help you find in QuickBooks, leave me a comment. I'd be glad to assist you further.

Not applicable

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

Hi, from what I understand is that once you have marked the transaction as a transfer when money is sent to the Paypal account from the business account, you then mark the payment from the Paypal account as an expense? 

Is this the correct way of doing things as I am slightly confused at all the cloned transactions. Most of my income payments are through PayPal 

thanks

dan

Not applicable

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

also the transactions from Paypal that are automatically going into quick books are in usd when it should be gbp, can you help with this also?

QuickBooks Team

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


Hello Dan,

 

You would mark the transaction as a transfer under the business account, and then go back to the PayPal account and match the transaction to that transfer you created. If you are transferring from PayPal to the business account, follow the same steps as above but marking the transaction as a transfer under the PayPal account first.

 

Could you please go to Accounting > Chart of Accounts, find the PayPal account and confirm which currency it is showing as.

 

Thanks,

 

Talia

Not applicable

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

Thankyou and the currency shown on Paypal is US dollars $

QuickBooks Team

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

Hi Dan, 

 

Is the transaction showing in your actual Paypal account as GBP?

 

To show the transactions in GBP currency you will need to disconnect the Paypal account and connect it to a new chart of account with GBP currency, as the currency cannot be changed once an account is created.

 

To disconnect, go to the chart of accounts > locate the Paypal account > click edit on the drop-down > tick 'disconnect this account on save'. 

 

To create a new account, go to chart of accounts > new > and choose GBP as the currency, then go to Banking and choose this account when re-connecting :) 

 

 

Community Explorer **

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

Hi There,

 

I came across this thread and I'm having a similar dilemma and I'm still confused.

 

I have Paypal set up as a bank account and an actual bank current account. If i've paid for a £1 item with my Paypal account but used the bank as the funding source - my bank shows "Paypal Payment" of £1 and my Paypal account shows £1 received from my bank and £1 going out for the expense.

 

So can I just record the £1 transaction in my bank as a transfer to Paypal, then match it in my Paypal account, then accept the £1 purchase in paypal as an expense?

 

I hope that makes sense.

QuickBooks Team

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

Thanks for joining this thread, @Business20.

 

Let me help provide some information on how to record the PayPal transaction in QuickBooks Online (QBO). 

 

In this case, you can use the Bank Transfer function to transfer the £1 to Paypal account that you've used to pay the item. This will post money out to your current account and money in to the PayPal account. 

 

You can follow the detailed steps in this article on how to record a funds transfer between two accounts: Transfer funds between accounts

 

One done, you can now create an expense or enter a bill transaction for the £1 payment made through PayPal account. 

 

If you need further assistance with the steps, I recommend contacting our QuickBooks Online Support Team. They have additional tools to pull up your account and do a screen-sharing. 

 

Here's how to contact our customer support:

  1. Sign in to your QuickBooks Online company.
  2. Select Help (?) at the top right.
  3. Select Contact Us to connect with a live support agent.

This will get you on the right track. Feel free to leave a comment below if you have additional questions about recording PayPal transaction in QBO. I'd be happy to answer them for you. 

Not applicable

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

can i set up a separate PayPal account In which i have credits and debits and then import my activity to qb?

QuickBooks Team

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

Hello, @tjw1.

 

Quickbooks allows you to automatically import transactions from some bank accounts, adding a PayPal account to Quickbooks so you can keep track of online transactions requires a little more work. Although automatic syncing isn't possible, you can still manually export transactions from your PayPal account and add them into Quickbooks.

 

When you're using the Paypal app, it will only let you choose one income account. You can use the Paypal Bank Feeds instead. This way, when the transactions are downloaded, you can choose what income account it will go.

 

First, create a Paypal bank account. Here's how:

  1. Click Accounting, then choose Chart of Accounts.
  2. Click New.
  3. Choose the Account and Detail Types.
  4. Enter the desired name, then the balance.
  5. Click Save and Close.

Then, let's connect it to the system. Here's how:

  1. Click Banking, then choose Banking.
  2. Click Add account, then search Paypal account from the list.
  3. Enter your credentials, then click Continue.
  4. Choose the Account type, then choose either a Bank or Credit Card account.
  5. Click Connect.

When the download is complete, you can see the transactions in the For Review tab. You'll just have to add or match the transactions.

 

Always feel free to click the Reply button if you have other questions. 

Not applicable

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

Hi 

 

I accept PayPal payments for invoices via QBO. I then withdraw the cash from PayPal into my Current Account. 

 

When i withdraw PayPal cash from my PayPal account and put it into my Current Bank Account it appears in the Banking section on QBO. 

 

What is the correct way to enter these transactions into QBO? I do not want the cash to be double counted as a payment of an invoice AND a deposit into my current account via PayPal withdrawal?

 

Thank you 

Alice

QuickBooks Team

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

Hi there, Alice.

 

You can match the transaction that shows in the banking section to the one created in QuickBooks. In the Receive payment page, let's make sure to select the bank account in the Deposit to drop-down menu.

 

Here's how:

  1. On the left panel, click Sales and choose Customers.
  2. Click the customer's name and find the receive payment linked to the invoice paid from PayPal.
  3. In the Receive Payment page, make sure the Payment date matches the transaction that is showing in the banking page. 
  4. Change the Deposit to field to your current account.
  5. Click Save and close.

Go back to the Banking section and check to see if you have a match.

 

I'm adding these sample screenshots for reference:

 

You can also check this article for more details: Assign, categorise, edit, and add your downloaded banking transactions.

 

When it's time to reconcile, you can check the steps here: Reconcile accounts.

 

We are always available if you need more help with QuickBooks Online Banking. Thanks.