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artisanpopcorn
Level 2

Paypal Transfers

Hi, I'm using Quickbooks Online and am still going old school with entering my Paypal transactions as individual sales receipts all myself. I choose Paypal on those sales receipts as the payment method for those paid with Paypal. I create a spreadsheet each week using Paypal's csv download file option and make a transfer to my bank based on the sales for that week. Then the Paypal transfer obviously shows up in my banking transactions in Quickbooks. I'm trying to figure out if the correct thing to do is create a deposit and then match it with the transfer in banking, or create a transfer and then match it to the Paypal transfer in banking, or go directly to banking, open the transfer and match transactions to the Paypal transfer. I'm worried about creating a double entry somewhere, and I'm sure you can tell accounting is not my strong suit. Thank you for any guidance you can provide.

6 Comments 6
Kristine Mae
QuickBooks Team

Paypal Transfers

Accounting is not something that we learn overnight, Artisanpopcorn. I know because until now, I'm still experiencing learning curves.

 

You have me, though. I'll help you manage the Paypal transactions.

 

You can match the downloaded transaction to the sales receipt. This way, it will not create any duplicates.

 

I'll guide you how:

  1. Click Banking, then go to the Banking tab.
  2. In the For Review tab, select the Paypal transaction.
  3. Select Find match.
  4. Under Show, select Sales receipts.
  5. Select the sales receipt to match the downloaded transaction.
  6. Click Save

I'll share some articles that'll help you with managing the downloaded transactions:

We're just around if you need our help. Feel free to get back to this thread. 

artisanpopcorn
Level 2

Paypal Transfers

Thank you so much, Kristine Mae. I appreciate your camaraderie in the accounting learning curves. So it sounds like I don't need to create a Paypal deposit or transfer first. Perhaps that would create duplication? I should just go to banking and match the incoming Paypal transfer directly with my sales receipts? 

Michael K
Moderator

Paypal Transfers

Thanks for reaching back out, @artisanpopcorn.

 

While there's multiple methods of recording this without possible duplication, it all comes down to preference. The way you provided in your reply of matching the transfer to your Sales Receipts would definitely work if you'd prefer that method.

 

If you have any other questions, I'll be here to help. Wishing you continued success in all that you do!

artisanpopcorn
Level 2

Paypal Transfers

Thank you so much for the additional feedback. In case others read this thread, are there optimal ways for recording transfers from other payment sources other than a cash and check deposits into a business checking account and making sure invoices and sales receipts get properly matched? If I'm using all the right terminology?

Michael K
Moderator

Paypal Transfers

Thanks for touching base again, @artisanpopcorn.

 

You can either create a normal bank deposit by going to + New, then Bank Deposit, or by creating it directly from the register by following these super easy steps:

 

  1. Go to the Accounting menu and select Chart of Accounts.
  2. Find the account register you want to review. If you're new to QuickBooks, select See your Chart of Accounts first.
  3. When you find the account register, select View register from the Actions column.
  4. From the Add journal entry, Add deposit or Add check ▼ drop-down menu, select the transaction type you want to add. 
    This shows the drop down menu at the top of a register list. You can quickly add transactions from this menu.


    Note: The Add feature is not available in every register
     

  5. Fill in the necessary fields and complete the form.
  6. When you're ready, select Save.

 

This should work out for most transactions. If you find this method doesn't work for you, it's recommended to reach out to an accountant to find a way that will work for you.

 

If you ever need to go back and edit transactions in the register, you can check out: Find, review, and edit transactions in account registers

 

Let me know if you have any other questions by using the Reply button below. I'll be here to make sure they get answered. Have a great weekend!

artisanpopcorn
Level 2

Paypal Transfers

Thanks again for the continued information. That's interesting because I did try the method of creating a Paypal deposit (adding in all the sales receipts that were included in that deposit), but then I couldn't find it when I when I went to match the Paypal transfer in banking. That's why I started this question thread, but I realize that I did forget to say that the bookkeeper I used when I initially set up my Quickbook account advised that I create a Paypal bank in my chart of accounts. So when I create a sales receipt I'm choosing Paypal as the payment method and hence that "bank account" right? I'm wondering how or if that comes into play with how the transfers and receipts are recorded. Perhaps it still doesn't matter which method I use? Just trying to make sure everything gets credited or debited the right way as a novice.

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