When matching Paypal bank transactions to sales receipts, Paypal processing fees are now going to "Undeposited Funds".

Hello there, @Schuggtf.

The settings for the Connect to PayPal app aren't the same as traditional apps connected to your QuickBooks Online (QBO) company. 

Follow these steps to change its settings:

1. Log in to your QBO company.

2. Go to the Banking tab.

3. Press the Edit (pencil) icon on the PayPal Bank account.

4. Select Edit Settings.

Other issues you may encounter when using this app, you can refer to this article: Connect to PayPal FAQ.

However, if your PayPal account is connected to QuickBooks Payments, you can update the account where the payments will be recorded. I'll guide you how:

1. Log in to your QuickBooks Online account.

2. Go to the Gear icon located in the upper right-hand corner.

3. Under Your Company, select Account and Settings.

4. On the left menu, select Payments.

5. Go to the Chart of Accounts section, select the pencil ✎(edit) icon.

6. Choose the correct bank account for Where do you want to record payments?.

7. Select Save.

Here's an article for reference: Choose where to record payments and processing fees for QuickBooks Payments.

You can also refer to this link: Use the Connect to PayPal app. It has a table that lists transaction types and how they're handled within QBO.

Feel free to visit us here if you have any other questions or concerns. Thanks.

Hello Maybelle,

I have checked there, however the settings only allow me to record the type of expense as shown in the screen shot.

as a side note, when I click the pencil button, the whole page freezes and times out, so I can not view other settings. I tried 2 browsers, but both had the same issues with it freezing when attempting to edit.

- Thomas

Hi Thomas,

Thanks for checking the article that Maybelle shared. At this point, I would recommend contacting our Support team. That way, they can check the issue about freezing further.

1. Click on Help and click the Search tab.
2. Click Contact Us at the bottom.
3. Enter a short detail about the issue and click Continue.
4. Choose Start a chat or Get a callback.

Let me know if you have other questions in mind.