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.

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 

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!

I have the same question but it the answers dont help at all. Setting up the loan accurately is not the problem but recording the payments. The loan repayments are automatically taken out of our daily sales that are deposited into our checking. We dont get a separate deduction for the payment. For example, if we had $868 in paypal sales for a day, we would get 25% less (or whatever the repayment is) deposited into our checking. So there is no accounting option in Quickbooks to keep track of this. 
However, I was thinking that perhaps at the end of each year during the life of the loan, we could just enter a journal entry for the total amount paid back to the loan, instead of trying to keep track of each payment deducted from our daily sales. 

I continue to be disappointed in Quickbooks customer service and help. I used to pay for the quickbooks accounting service but Quickbooks hires people who are very young in accounting and dont have an understanding of paypal sales. They totally screwed up my accounting and I have had to spend countless hours redoing everything they did to fix the issues. 

Let me just state to everyone out there who uses paypal in their daily sales that Quickbooks does NOT track this well. Their staff tries to set up a separate line item for each paypal fee per transaction. It was a total nightmare to try and fix. I would instantly quit using Quickbooks if there was a easy way to slide into a new program that can do my accounting and payroll,. It has been an extremely frustrating year with QB and I would NOT recommend this program to any other business owner. I would tell them to start first with another accounting program.