How would Paypal know the class? There may be some intelligence that QBO uses to guess the class, as it does for regular bank transactions, or you may be able to make a rule, based on the customer. At least you can change the class in For Review. What I don't like is that there is no way to change the Item in For Review, and there seems to be just one Item allowed, that is always used
Welcome to the Community! Allow me to share additional information on how your PayPal transactions are downloaded in the system.
In QuickBooks Online, downloading an updated list of your transactions depends on how and when your financial institution shared it to us. As per to the data included, currently, the ability to control the type of data and category downloaded is not yet available.
When your transactions are downloaded in the system, it will stay under “For Review“ tab. It will stay there not until you “Add“ it to QuickBooks register. However, if the system can find a manually recorded transaction that has the same information with the downloaded one, you can match the transactions to avoid duplicate records.
In addition, you can also create a rule in QuickBooks Online. This rule will automatically categorized your downloaded transaction, add a payee, select a Class and a Territory.
Click Banking on the left panel.
Select Bank Rules.
Click the New rule button on the upper right-hand corner.
Enter the details of the rule.
For more detailed instructions, you may check out this video tutorial: Bank Rules.
If you’re having difficulty setting up rules to automatically classify your PayPal transactions, I’d recommend reaching out to our Customer Care team. A specialist will be able to further assist you via a secured remote access session.