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Set up Connect to PayPal 2.0 with QuickBooks Online

by Intuit Updated 3 weeks ago

Learn how to connect your PayPal account to QuickBooks Online so you can easily import your sales transactions and review them before they save to QuickBooks.

With the Connect to PayPal 2.0 app, you can automatically import your sales transactions from PayPal into QuickBooks daily. Once set up, the app monitors your PayPal account for all transactions, including sales, refunds, and shipping fees.

Step 1: Set up the Connect to PayPal 2.0 app

  1. Sign in to your QuickBooks Online company file.
  2. Go to Apps, then select Find Apps.
  3. Search for and select Connect to PayPal 2.0.
  4. On the app details page, select Get app now.
  5. Select Continue.
  6. Select the start date for the transactions you want to sync with QuickBooks, up to a maximum of 90 days in the past.
  7. QuickBooks needs your permission to connect with your PayPal account. This allows QuickBooks to get info from PayPal, like sales details and payout info. Select Agree to continue.
  8. In the new tab that opens, enter your PayPal account login credentials, then select Continue.
  9. Back in QuickBooks, choose one of the following to track PayPal transactions:
    • Create a new PayPal bank account. (recommended)
    • Select the account you already use to track PayPal transactions.
  10. Select Next.
  11. If you transfer money between PayPal and a bank account, use the dropdown menu to select an account. You can add or edit this selection later from your app settings. Select Next or Skip.
  12. Congratulations! Your PayPal account is now connected to QuickBooks. Select Check it out to be taken to the App Transactions tab.

It may take awhile to bring in your PayPal transactions. Try periodically refreshing the page so see if some are ready.

Step 2: Review your PayPal transactions

When your PayPal transactions appear in QuickBooks, you’re ready to review, add, exclude, or undo them. Transactions can be sales, deposits, transfers, or expenses. For easy reconciliation, add transactions through the integration first and then match them on your banking tab.

  1. Go to Transactions then select App transactions (Take me there).
  2. Use the dropdown menu to filter transactions by PayPal Payments.
  3. Select the For Review tab.
  4. For each transaction, select an option in the Action column:
    • View details: Expands the details such as the transaction ID, item sold, the PayPal customer, or the vendor.
    • Add: This transaction is ready to add to your books. Note: To ensure all your sales data from PayPal gets added to QuickBooks, we recommend you add transactions from the App transactions tab, then match them from the Banking tab.
    • Exclude: This transaction won’t be added to your books.
  5. Once you’ve added transactions, you can review the sales receipts and matching deposits under the Added/Matched column in the Reviewed tab.
  6. If you need to undo a transaction that you’ve added to your books, select Undo under the Action column in the Reviewed tab.

Add Customers or item details to QuickBooks from a PayPal transaction

You can map items to the corresponding QuickBooks Product/Service or import item details to create new QuickBooks Product/Service. You only need to do this once per item and this ensures sales tracked to the correct income account.

  1. Go to Transactions then select App transactions (Take me there).
  2. Use the dropdown menu to filter transactions by PayPal Payments.
  3. Select a PayPal transaction to expand the details.
  4. Select the row that contains the date, payee, and description. The Customer and item details menu displays.
  5. You should see the QuickBooks assigned default names for PayPal Customer and PayPal Sales Item. Under each, you’ll see the names imported from the integration and a dropdown menu.
  6. Use the dropdown menus to select +Add new. The new customer or product/service window appears with the imported information already added.
  7. Make any other edits in the new customer or product/service window, then select Save and close.

Manage your settings or disconnect the app

You can change the deposit account, item, and customer settings for the Connect to PayPal 2.0 app by going to the app settings. Here you’ll also find advanced settings, and where to go to disconnect the app.

  1. Go to Transactions then select App transactions (Take me there).
  2. Select App settings, then PayPal Payments.
  3. Select the tab for the type of setting you want to change:
    • General: Where you can view your PayPal bank account, and edit the account used for matching transfer transactions.
    • Items/Expenses: Where you can edit the default product/service used for PayPal transactions or the default expenses category used for PayPal expenses.
    • Customer/Vendors: Where you can edit the default customer used for PayPal transactions or the default vendor used for PayPal expenses.
    • Advanced: Where you can edit other default items such as discount, shipping and handling, taxes, and tips. Here you can also edit the default transaction fee account.
  4. If you need to disconnect the app, select Disconnect PayPal.
  5. Select Save.
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