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forystx
Level 1

Should I: "Deposit" PP transaction to place in correct account? "Transfer" PP withdrawal to other BANK with the PP deposit? How to match PP transactions to the deposit?

Connecting the Deposit/withdrawal - The transactions for our review in QBO show a withdrawal (negative amount) in PayPal 2 Bank and a Deposit (positive amount) in our checking bank. The default in PayPal 2 transaction review is to “record as a transfer” to our “OC”. In my checking bank, the default appears to be a “record as a transfer” to “Uncategorized Assets”. If I transfer the PayPal withdrawal to my OC, will I be able to match the 2 (withdrawal and deposit). Processing PayPal Transactions - We need to place the PayPal transactions into specific accounts. When reviewing a PayPal transaction our options to Categorize are: Sales receipt, Deposit or Transfer. As a Sales Receipt we do not have an option to identify an account. If we select Deposit, we can identify an account. Another choice is to “Match” but there is nothing listed to match to. So how do get my PayPal transaction into the correct account as well as match the multiple PayPal transactions to the deposit in OC.
3 Comments
LieraMarie_A
QuickBooks Team

Should I: "Deposit" PP transaction to place in correct account? "Transfer" PP withdrawal to other BANK with the PP deposit? How to match PP transactions to the deposit?

Thank you for all of the details! Rest assured, I'll help you get these transfers categorized with ease.", @forystx!

 

PayPal expenses paid via credit card show up on both your connected PayPal account and your connected credit card account. PayPal immediately withdraws the money from a bank account. In QuickBooks Online (QBO), this is considered a “Transfer” transaction. Whenever you classify the item as a transfer in one bank feed, it will create a transfer transaction in QuickBooks. The other bank feed will then recognize this transaction, and suggest to match it. It's as easy as that!

 

Here's how:

  1. Go to your PayPal bank feed.
  2. Add/transfer transactions on the PayPal account. 
  3. Then, go to the other bank feed, which is the checking account.
  4. Match the expense on the checking account with the transfer on the PayPal account. 

Refer to these articles to for more detailed steps: 

 

I've also got you some helpful articles that contain commonly asked questions about the Connect to Paypal app, including its features and compatibility and How-Tos: 

 

I'm always around if you need further assistance with matching bank feeds transactions. Have a wonderful day!

forystx
Level 1

Should I: "Deposit" PP transaction to place in correct account? "Transfer" PP withdrawal to other BANK with the PP deposit? How to match PP transactions to the deposit?

Sorry if this is a duplicate reply

Thanks for the prompt response and found the article Connect to PayPal: A New Way to Bring PayPal transactions Into QuickBooks helpful.  Would like additional assistance but let me give some contextual information that may help in phrasing my question(s).  Our non-profit uses PayPal to sell/obtain performance ticket, membership, and donations– 100% income, obviously minus the PayPal fees.  We have PayPal connected to our checking/savings Bank (Bank A) and monthly, we transfer all funds from PayPal to Bank A.  With PayPal connected to QuickBooks this transaction shows as a negative/withdrawal/transfer to Bank A.  Bank A shows the Deposit from PayPal. Based on article, in QuickBooks I transferred the PayPal withdrawal transaction to Bank A which I then matched with the deposit in Bank A from PayPal. Is this correct?

 

For the PayPal transactions or “sales” that were reviewed in QuickBooks, the article directed us to open the DETAILS which allowed us to make some edits.  I was able to add the Product/Service such as “membership”  but left the DEPOSIT TO: Undeposited Funds???  I really want the transaction to be reflected/reported in our Account – “Membership dues” so would I add this account number/name here in the DEPOSIT TO: drop down selections ?  Then how do we match the deposit in BANK A with these transactions.  As an FYI – I did save them in the undeposited funds, and they do appear in the INCOME area but in an incorrect account number/name for some reason is associated with it which many be another question later.

 

Thanks so much

 

Linda

Jovychris_A
QuickBooks Team

Should I: "Deposit" PP transaction to place in correct account? "Transfer" PP withdrawal to other BANK with the PP deposit? How to match PP transactions to the deposit?

You're doing it right, @forystx.

 

So when you deposit the sales from PayPal to Undeposited Funds (UF), it's best to record it as a Bank Deposit. It will help select those sales to include on a one deposit entry. Also, this will help total the amounts of the transfer from PayPal to the business bank.

 

See this article to check more info about UF: Deposit payments into the Undeposited Funds account in QuickBooks Online.

 

You can bookmark this article for future reference: Record and make bank deposits in QuickBooks Online. In case you missed some steps, you can view this page to ensure that you're doing it accurately.

 

If posted in an incorrect name, you can run the Deposit Detail report to see the deposits created and update it and place the amount on the right account/name. You can click the search icon and type the report name.

 

Feel free to place a comment in case there's anything else I can help you with. I'll reply as fast as I can.

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