Thanks for joining this thread, radial.

I can guide you in matching the Paypal payment to the invoice in QuickBooks Online.

If the invoice is still unpaid, you can use the Find Match and Resolve Difference features. This will let you enter the PayPal fees in the expense account.

First, make sure that the invoice and payment amounts are the same. Then, enter a negative entry for the PayPal fees in the Add resolving transactions section. I'm glad to show you how:

1. Locate and click the online banking transaction to see the details.
2. Hit the Find match button.
3. Select the invoice, then make sure that the Transaction and Payment amounts are the same.
4. Turn on the Resolve Difference feature.
5. Under the Add resolving transactions section, fill in the needed details such as the Payee name, Category and enter a negative amount.
6. Ensure that the difference amount is zero and the Downloaded transaction and Total amounts match.
7. Hit the Save button.

To learn more about matching transactions, please visit this article: Add and match downloaded banking transactions.

However, if the invoice is already paid, makes sure to deposit the payment to the Undeposited Funds account. Then, add the PayPal fee in the Add Funds to this Deposit section.

I'll show you how:

1. Go to the Plus sign icon, then choose Bank Deposit from the pop-window.
2. Select the correct bank account in the first box a the top.
3. Scroll down to the Add funds to this deposit section.
4. Under the Account column, add the needed details such as the name and expense account.
5. In the amount, make sure to use a negative entry (ex.-32.12).
6. Ensure that the Amount at the top is the same with the one you receive.
7. Hit Save and close.

Once you go to the Banking page, it will automatically show as 1 Record found and you'll just need to click the Match button.

I'm including this link for future references: How to record bank deposits.

You can also check out the Firm of the Future site to learn more about product enhancements and tips to efficiently manage your business.

Please leave a comment below if you need any further information. I'm always here to assist if you have other questions.

Hi,

Thanks for posting this.  I've got it to work for me although can't work out how to do 'step 3 create deposit' on the android app. Is it possible? 

Hello Chrisckb,

Since the mobile app has a different platform, you'll want to access QuickBooks from a browser. This way, you can create a deposit. Let me guide you through how.

1. Open a browser (Chrome, IE, or Firefox)
2. Go to http://qbo.intuit.com.
3. Enter your sign-in information.
4. Then, click the (+) Create icon.
5. Click Bank Deposit. Then, enter all the necessary information.
6. Click Save and close.

Once done, you can match the deposit to your downloaded transaction.

You can also check our page to know more about mobile apps: Mobile applications hub.

Feel free to drop by anytime if you have other questions.

Great,  thanks

Maybe something you guys could add to the app in a future update!

Thanks for responding, Chrisckb.

We plan to bring in more features in QuickBooks app. I can send a product request directly to our engineers in your behalf. They can consider this feature added in the future update.

Meanwhile, please check out blog site to know the latest update of QuickBooks. Here's the link: https://quickbooks.intuit.com/blog/whats-new/.

You can also visit our page for tips and articles of you future tasks: Banking and bank feeds.

You can always swing by anytime if you need help with anything else.

This does not record the fee at the bank.   There will be two paypal transactions at the bank. 1) the amount transfered to the vendor and 2) the fee charged.  This method shown does correctly account for the amount transfered but it does not provide a solution to then record the fee.    

Hi PEMBA-Patricia,

You'll want to create two transactions since the fee and payment were recorded and downloaded separately. Then, match them on the Banking page.

1. Click on the + New button and choose Expense.
2. Choose a payee and select PayPal from the Payment account drop-down arrow.
3. Set the payment date.
4. Enter the payment information in the Category details or Item details section.
5. Once you're done, click on Save and close.

Then, you can categorize and match these transaction to the downloaded ones.

Let me share this article in case you want to unmatch and delete downloaded transactions.

Leave a comment if there's anything else we can help you with. We're always here to help.

Did you ever find a way?

Thanks for joining in on the thread, WeLovePrinting.

It seems that this is a pretty long thread already. What specific concern do you have? Which of the troubleshooting steps didn't work for you? This would help us know if you have a unique concern or not.

We'd be glad to know more details of this so we can further help you. Thank you in advance!

Looking to be able to do this automatically

Hi WeLovePrinting,

Right now, the option to record PayPal fees automatically in QuickBooks is unavailable. Your input gives our product engineers ideas on changes. Most of the tweaks in QuickBooks are coming from users' suggestions.

I'll take note of your idea and send this directly to them. They can put customer's ideas to work in the future.

In the meantime, I suggest checking back for any enhancements and announcements through these links:

• The QuickBooks Blog
• Firm of the Future

Stay tuned for more updates by also connecting with us here in the Community. If you have any other concerns, let us know. We're always here to help.

Hello, 

Once this is recorded in QB. How do I record the transfer from PayPal to my bank? 

Thank you.

Happy to have you here in this forum, @DJMon.

I can share some steps on how you can record the transfer of amounts from PayPal to your bank.

The process usually depends on how PayPal works with QuickBooks. If your PayPal bank is connected, then you can use the Bank Transfer feature to move the amount. On the other hand, if the PayPal app syncs with QuickBooks and imports your sales transactions, you can handle the transactions the same way as other transactions by finding a match from the Banking page.

To record a bank transfer:

1. Select Transfer under Other from the New (+) icon.
2. Choose a bank account where the fund is coming from and where you want to transfer it.
3. Enter the amount and the date of the transaction.
4. Save the transfer entry.

On the other hand, you can read the details from this link to learn more about managing PayPal app transactions from the Banking page.

If there's something else that you need, feel free to leave a comment below. We'll reply as soon as we can.

Did you find a solution on how to automate deducted PayPal fees?

Thanks for joining in on this thread, Gr10.

We still don't have the option to record the PayPal fees automatically in QuickBooks Online. We have three ways to record the processing fees in QuickBooks Online. You can select either of the following that is convenient for you:

• You can Find Match the bank transaction and use the Resolve Difference feature.
• Create a separate Expense or Check to record the processing fees.
• Include the processing fees when creating a bank deposit.

You can go to PreciousB's response to see the detailed information on every options that I've mentioned.

We'll take note of this feedback. We'll keep on working to ensure that the program can provide the functions or features needed to manage your businesses. You can always visit these links to see product updates:

• The QuickBooks Blog
• Product Updates

Let us know if you need anything else that we can help you with.

Ok this is the most maddening thing ever... I used to make software and this is not intuitive...

If QB finds the right invoice match on the initial matches found (14 total)  and you click match, everything works and the fee and deposit match and are attached to paypal bank...

If however you have to click "find other matches"(most of the time for me), than for some reason it unlinks the fee and deposit, putting the deposit in paypal bank and the fee in undeposited fee... and they are not easy to link back up...

Not only that, but I just figured that out after 100s of transactions because it should have worked with the match function...

(on a side note you should be able to link a customers paypal account to your customer in QB so you only see that customers invoices)

Hello @jasper-simonds,

We want to help you with your concern about the Find match feature. However, we need more information about it to provide the right resolution and to get this sorted out promptly.

Can you share more information about the deposit going to the PayPal bank and the fee to the undeposited section? Any additional details like screenshots will help us provide an accurate solution to the problem.

In the meantime, you can check the following articles to know more about matching downloaded transactions, as well as how to unmatch them in QuickBooks Online:

• Categorize and match online bank transactions in QuickBooks Online

• Unmatch downloaded bank transactions or move them to another account

Please know that you're always welcome to post any questions you have in this space. Have a great day ahead.

Here is the Screenshot.

Sorry it took so long to get back, it got lost in spam folder...

Also why doesnt QB allow you to sync a customer from paypal to the same customer in QB... That would solve the problem.

Or at the very least allow you to try and find matches based on name and not amount.

Good afternoon, @jasper-simonds. 

Thanks for reaching back out to the Community. I hope your week is going well so far. Allow me to provide you with some additional information. 

To properly assist you, can you please resend the screenshot? In your recent post, there wasn't a screenshot available to review. This will allow me to determine the best solution for your business. 

The Connect to PayPal app allows you to sync your customer's information. Here are two articles that can help you out if need be: 

• Connect to PayPal

• Use the Connect to PayPal app

I want to make sure all of your concerns are addressed. It's my priority that you're able to get back to running your business. The Community is always here to have your back. I'll be waiting for your response. 

Hopefully this works... It actually allowed me to embed the photo this time...

In QB Online, i don't see a way to do Step 4. I see no way to add a line item to this payment at all - how do you do that? 

See below (bolded at my question):

Does not matter if it is QB online ir desktop, the procedure is exactly same, correct and up to date.

1. Sell item for $100

2. Record received payment of $100 posted to Undeposited Funds

3. Create deposit selecting the $100 item (or all that are in one deposit as is case with Square)

4. Add line item negative processing fee for $3 - How? 

5. Save net deposit of $97

6. Accept green match

Works every time AND IS proper and accepted accounting. 

I would love do it this way, just don't know how to do step 4 in QBOnline

Hello @ccavella,

You can create a deposit to add the line item with a negative processing fee. Let me show you how.

1. Go to the +New button.
2. Under OTHER, select Bank Deposit.
3. On the Select the payments included in this deposit section, select the payment you recently entered.
4. Below the ACCOUNT column, select your Square or Bank Fees account.
5. Enter the amount of the processing fee. Say -3.
6. Click Save and close.

From here, you can go ahead and match the Square payments with the deposit you've created after following the steps above.

Additionally, I've also included this reference for a compilation of articles you can use while working with us: Banking in QuickBooks.

If there's anything else that I can help you with, please let me know in the comments below. I'll be here to lend a hand.

But what account does said 'negative processing fees' go to? 

Allow me to step in and share what account to use for the bank fee, Rrgoode311.

The fee as a negative amount is entered as another line item when making a bank deposit. See the attached screenshot for your visual guide.

To track bank or PayPal fees, you need to create an expense account to allocate these charges Let me show you how:

1. Go Accounting in the left hand menu, then select Chart of Accounts.
2. Click New on the right hand side.
3. Create an Expense account and name it Bank Service Charge/Fees.
4. Select Save.
   
   

I'm adding this article  in case you need to match transactions in QuickBooks Online: Match and categorize your downloaded bank transactions.

As always, you can browse our QuickBooks Community help website if you need tips and related articles in the future.

Keep in touch with me here for all of your QuickBooks needs, I'm always happy to help. Have a great day.