Learn how to set up Connect to PayPal and discover the features that come with it.
Want to download the app? Get Connect to PayPal here.
Features of Connect to PayPal
Connect to PayPal shows you the gross and net of each sale. The app brings in both the income and the associated fee, which will then be linked together in a Deposit.
- For sales: To give you more organized and detailed reports, your sales receipts will have the following information from PayPal:
- customer name
- customer e-mail
- customer address
- description of item sold
- PayPal reference number
- For expenses that are not fees: Connect to PayPal creates the expenses with full vendor information, then categorizes them accordingly. You can re-categorize, if necessary. Fee expenses will be categorized into a PayPal Fees account.
- No more “extra” transactions: This means you won’t see transactions that are duplicates or have intermediate statuses. This includes authorizations, temporary holds, and reversals.
Learn more about the new Connect to PayPal app.
Set up Connect to PayPal
Before connecting to Connect to PayPal
Set up Sales Tax
Even if you don’t charge sales tax to your customers, you need to turn on Sales Tax Center or GST Center to capture and record sales tax correctly.
Import your PayPal products and services into QuickBooks
For correct inventory levels and accounting, the app will identify the right products or services for sales based on the item name. To make this work, set up your QuickBooks items the way you have them in PayPal.
| Note: If PayPal products or services are not specified in your app, it will select the default item PayPal Sales. |
Migrate existing connection to Connect to PayPal
You need to authorize QuickBooks to migrate data over to Connect to PayPal.
- Log into your QuickBooks Online account.
- Select Banking.
- Select Add Account in the upper right.
- Select the PayPal tile.
- Select the Let's do it button.
- On the migration screen, select the existing PayPal account you want to migrate.
- To authorize Intuit to pull data from your PayPal account, select Give permission.
- Enter the email address associated with your PayPal account, then Next.
Reminders:- If you don't have an account, you'll be prompted to create one.
- If you create a new account, you need to go back to QuickBooks Online and restart the connection process.
- Sign in to your PayPal account.
- To authorize the sync, select Agree and Connect.
- Once the connection is established, select Return to Intuit.
- Select PayPal Bank where you will find your PayPal transactions, then Next.
Note: Generally this is separate from your bank account. It will be automatically made for you upon set up. - Select the Sales tax rate that will be applied to all imported Sales transactions, then Next.
- If you have historical transactions, select the starting date of the transactions that you want to import, then select Done.
Note: You can import up to 18 months of historical transactions.
You're now set up! You will see the PayPal connection listed on your QuickBooks Banking screen.
Select a start date and troubleshoot
Select the right start date
When making the switch from Bank Feeds to the Connect to PayPal app, you need to know the date of your most recent transactions that are imported. Recent transactions can be the same date of the day the switch takes place, or a day prior.
Once you know the date, you can use it as the start date for the new connection.
| Notes:
- If days overlap, it could cause duplicates to be imported.
- Transactions that are left in the “For Review” tab from the previous bank feeds connection will remain there when you establish the connection to Connect with PayPal.
- The Connect with PayPal app won't re-import transactions to avoid duplicates.
|
Missing data: add transactions manually
If there are 1 or 2 transactions missing, it’s easier to enter these manually into your PayPal account register.
- Log into your QuickBooks Online account.
- Go to Bookkeeping, and select Chart of accounts (Take me there).
- Locate your PayPal account.
- Select View Register.
- You can add new transactions on the top of the register.
Check QuickBooks for duplicate data
In the Banking page, select the PayPal account and look for duplicate data. Exclude the duplicate transactions to make sure fees are not duplicated.
Related Articles
Connect to PayPal Guide
Connect to PayPal - FAQs
Switching from Sync with PayPal to Connect to PayPal
