QBO Paired Transactions in PayPal

I'll help with your questions about banking and PayPal transactions in QBO, James.

The Connect to PayPal app syncs all bank transfers from PayPal into the default bank transfer category known as "PayPal Funds Transfer Account". As of this moment, this category is not configurable.

Because of this, there is no option to assign separate categories. As a workaround, you'll want to exclude the transaction in the For Review tab. Then, manually record the transaction so you can select the category that you want. 

Here's how to exclude a transaction: 

1. Go to Bookkeeping, select Transactions, and then click Bank Transactions.
2. Proceed to the For Review tab.
3. Select the checkbox of the transactions to exclude.
4. Click Exclude.

After that, manually record the transactions by clicking the + New button and select Expense or Transfer. Then, enter all the required details. Here's an article about this for more details: Exclude a Bank Transaction you Downloaded into QuickBooks Online.

Let me also share these articles for additional resources when managing PayPal transactions in QBO: Why Use Clearing Accounts in Your Accounting System for PayPal, Credit Cards, and Other Payment Chan...?

Feel free to post any additional questions if you still need help with QuickBooks. Our commitment is to make sure that you receive the support you need.

Hello jenop2,

Actually, my problem is the reverse of your example. I am finding the paired transaction in my PayPal account. However, the workaround you provided may work the same as QBO appears to treat PayPal as a bank.  Since the funds are automatically transferred from our Bank account to PayPal I am working with old data which I have had to import with CSV files.  Thanks for your help.

This is an update ot my initial response to the workaround provided. The real bad news in your workaround is now I have several hundred entries that I have to delete and then manually reenter.

Hello, JamesC49.

I can see how having the option to categorize PayPal transactions in QuickBooks Online (QBO) would be helpful for you and your business. For now, you can follow the steps shared by my colleague above as a workaround.

We value your input and encourage you to leave feedback to inform our engineers about the feature you require. This will enable them to consider adding it in future updates.

Here's how to submit:

1. In QBO, go to the Gear icon at the top, then Feedback.
2. Enter your comments or product suggestions. Then select Next to submit feedback.

You can track feature requests through the QuickBooks Online Feature Requests website.

Additionally, I suggest conducting regular reconciliations to guarantee the balance and accuracy of your account. Refer to this article for future reference: Reconcile an account in QuickBooks Online.

Please leave a comment below if you have more questions about this or anything else. I'm always here to assist. Take care.