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gnocchi
Level 2

Proper workflow for recording Paypal monthly charges that are charged to my Bank account

Hello!

 

I have setup two different bank accounts in my QB desktop. One for Paypal, another one for my Bank.

 

Paypal charges a monthly fee for a virtual terminal service. Since I imported Paypal transactions into QB these charges show up properly. And since Paypal charged my Bank for this same service, I can see the charge in my Bank ledger. 

 

It seems to me that if I don't do anything, the balance sheet will account for these charges for the same service twice. How should I address this to reflect just one charge? The charges on my Bank should remain there because they affect the monthly balance. 

 

Thanks!

 

Solved
Best answer March 10, 2021

Best Answers
Angelyn_T
QuickBooks Team

Proper workflow for recording Paypal monthly charges that are charged to my Bank account

Thank you for getting back, @gnocchi.

 

You have two options for this. You can either retain the bank fees on your Business bank account or PayPal. You can enter the sales on your PayPal account, then record the fees once you've transferred the funds from PayPal to Business Bank. 

 

Just in case you want to delete the transactions recorded from your bank, you can go to the register.

 

  1. Go to the Lists menu, then select Chart of Accounts.
  2. Look for your account, then double click it to open the register.
  3. Locate the entries, then remove them.

 

For additional references about handling bank transactions in QuickBooks Desktop, you can open this article: Find help with bank feeds and reconciling accounts.

 

Moreover, feel free to skim through the topics from our help articles for more hints about QuickBooks.

 

If you have any other QuickBooks or banking questions, leave a comment below. I'm always here to help. Have a good one!

View solution in original post

3 Comments 3
Mark_R
QuickBooks Team

Proper workflow for recording Paypal monthly charges that are charged to my Bank account

I've got your back, @gnocchi.

 

Since the charge reflecting both on your PayPal and Bank accounts, you'll want to ignore and delete the one showing on your bank account. This way, it will only show on your PayPal account. Here's how:

 

  1. Go to the Banking menu, then select Bank Feeds and choose Bank Feeds Center.1.PNG
  2. Select the bank account and click the Transaction List button.2.PNG
  3. Find the PayPal charge and choose Ignore from the drop-down beside Select.3.PNG
  4. Click Yes to delete the transaction.

 

Moving forward, you'll have to do the same process once you import your PayPal transactions in QuickBooks. This way, you can remove the PayPal charges reflecting from your bank account.

 

You might want to learn more about matching bank transactions in QuickBooks Desktop, feel free to check out this article for detailed information: Add and match Bank Feed transactions in QuickBooks Desktop.

 

Please post a reply below if you have other concerns with your bank transactions in QuickBooks Desktop. I'll be more than happy to assist you again. 

gnocchi
Level 2

Proper workflow for recording Paypal monthly charges that are charged to my Bank account

Thank you for your answer,

 

I forgot to mention that I'm entering all these data without using Bank Feeds. Unfortunately, I'd be unable to modify the ledger for my Bank, as we use their statements to reconcile the account. Because the payments from the Bank to Paypal was recorded as a payment to a "Vendor" called "Paypal Merchant Expenses", I left these records untouched and deleted the corresponding ones in the Paypal account.

What do you think about this approach?

 

Thank you!

Angelyn_T
QuickBooks Team

Proper workflow for recording Paypal monthly charges that are charged to my Bank account

Thank you for getting back, @gnocchi.

 

You have two options for this. You can either retain the bank fees on your Business bank account or PayPal. You can enter the sales on your PayPal account, then record the fees once you've transferred the funds from PayPal to Business Bank. 

 

Just in case you want to delete the transactions recorded from your bank, you can go to the register.

 

  1. Go to the Lists menu, then select Chart of Accounts.
  2. Look for your account, then double click it to open the register.
  3. Locate the entries, then remove them.

 

For additional references about handling bank transactions in QuickBooks Desktop, you can open this article: Find help with bank feeds and reconciling accounts.

 

Moreover, feel free to skim through the topics from our help articles for more hints about QuickBooks.

 

If you have any other QuickBooks or banking questions, leave a comment below. I'm always here to help. Have a good one!

View solution in original post

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