Thank you for reaching out with such detailed information, Travelqueen. You’re spot on. QuickBooks has officially replaced the legacy "Bank Feed" with the new, Intuit-built PayPal Connector. This update moves your workflow from the Bank Transactions tab to a consolidated AppTransaction tab.
Regarding your confusion, even though your old account displays "Disconnected," both the legacy integration and the new PayPal Connector are active during this transition. This "double sync" creates duplicate activity, making it impossible to reconcile because the same transaction is being counted in both your old "PayPal Bank" and your new "PayPal Balance" accounts.
To resolve this, In your new PayPal settings, you must "select the correct transaction sync date." Choosing the date immediately following your last successful reconciliation in the old account tells the new connector to stop pulling historical data that already exists in your old feed and ensure to use the settings to "designate a deposit account" so all new data flows to one specific place moving forward.
Let's outline each questions and answers below:
- Is the new Connector intended to replace the original feed entirely? - Yes. The PayPal Connector by QuickBooks is going to be the only supported method moving forward.
- What is the correct way to transition?
Here's how:
1. Under the Banking tab, locate the PayPal app button and click the "Update now" button on the "Sync Stopped" banner.
2. Follow the on-screen prompts to connect. Once logged in, you can access the application under the new Integration Transactions tab (please allow a few hours for it to appear). You may also watch this tutorial video on How to connect QuickBooks Online to PayPal.
3. Click on PayPal settings to designate a deposit account, select your transaction sync date, and enable customer/vendor tracking before selecting "Save".
3. Is there a recommended method to merge the accounts? - There is no recommendation to merge accounts in the new updates. Instead, the experience has been reimagined to import a "more robust set of data" into the new structure.
4. How do I ensure I don’t create duplicates? - By clicking the "Update now" button on the "Sync Stopped" banner from the old connection to the new PayPal Connector. To ensure a clean transition, you must "select the correct transaction sync date" in the PayPal settings so the app does not pull transactions from before today, effectively stopping it from creating duplicates of what the old feed has already pulled.
5. If I disconnect the old PayPal Bank feed account, what happens to the historical transactions already stored there that are not in the new PayPal Connector account? My assumption is that I would leave the historical account in place or make it inactive later, and prior year reports would still pull correctly from that account.
• Your assumption is correct, your historical transactions and reports will remain intact. Since the old app is being "retired" or "sunset," your data stays where it is while new activity moves to the App Transactions tab. Setting the correct sync date ensures a clean hand-off without affecting past records.
6. In the PayPal Connector settings, should I leave the default mapping to the new “PayPal Deposit Account / PayPal Balance Account,” or should I remap it to my original PayPal Bank account?
• Yes, It is recommended to leave the default mapping to the new "PayPal Balance Account." This account is specifically designed to support the new integration's more robust data features.
7. If I remap the PayPal Connector to my original PayPal Bank account, will new transactions begin flowing into that existing account alongside the historical transactions already there, or is there a risk of creating duplicates or corrupting prior categorizations?
• No. Remapping is not advisable as it conflicts with how the new app is built to function. Forcing the new, detailed data into the old account configuration increases the risk of creating duplicates and manual errors.
To address your goal of moving your PayPal activity into a single account while protecting your history, please follow the steps provided in question 2 above. Take note, do not disconnect and reconnect the app to try and fix the mapping. This will not resolve the issue and may cause a delay before you can reconnect.
Once you have set the final sync date for your old connection, it will no longer fetch new data. You can then close that account by reconciling it and begin using the new PayPal Connector as your primary connection moving forward. This ensures all transactions are automatically and smoothly added to QuickBooks Online using the improved auto transaction matching algorithm.
You may also explore these articles to help you with other details you need about the usage of PayPal connector:
Please don't hesitate to leave us a response if you have other questions or concerns.
