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I just received a PayPal Working Capital loan. What is the best way to record loan payments that are taken out of every sale processed through PayPal?

I just received a PayPal Working Capital loan. PayPal will take a % of sales until the amount borrowed (plus the finance fee) is paid back. My retail sales are processed through PayPal and I use the PayPal app in QB for automatic reconciliation with my PayPal account. I set up an "Other Current Liabilities" account for the loan. What is the best way to record loan payments that are taken out of every sale processed through PayPal?

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Moderator

I just received a PayPal Working Capital loan. What is the best way to record loan payments that are taken out of every sale processed through PayPal?

Let's get this straighten out for you, kate.

In QuickBooks Online (QBO), you can track loans by creating by creating a liability account. 

If the loan is to be repaid within the current fiscal year, you can set up an Other Current Liability account. However, if the loan will continue to be repaid after the current fiscal year, I suggest creating a Long Term Liability account.

To learn more about recording a loan and its payments, you can check out this article: https://community.intuit.com/articles/1145895.

On the other hand, if you connect your PayPal account with QBO through bank feeds, you can categorize and match your transactions from there. Otherwise, you can refer to this article that'll help you get a better idea on how to record your transactions using the  Sync with PayPal app.

Feel free to consult an accountant if you're unsure on how to record these transactions in QuickBooks.

Fill me in you have other questions about recording loan payments, kate. Thanks.

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Level 1

I just received a PayPal Working Capital loan. What is the best way to record loan payments that are taken out of every sale processed through PayPal?

Hi, anyone knows how to do it, the loan liability is not a problem with me, the problem is, since my PayPal is linked with already created invoices....  many tks 

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QuickBooks Team

I just received a PayPal Working Capital loan. What is the best way to record loan payments that are taken out of every sale processed through PayPal?

Hello there, sandra silva. 

 

I'd like to ask further clarifications about your concern so I can walk through the detailed steps on how to solve them. Are the linked transactions caused duplicates in your register? Or are the transactions not showing on the correct account? 

 

Once you've connected your PayPal account into QuickBooks you can handle the transactions the same way as other banks do. Such as editing, categorizing and matching them. 

 

You can check out this PayPal article to know more on the three ways on how to connect your PayPal account into QuickBooks Online

 

Keep me posted, I'll keep an eye on it. Thanks in advance!

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