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Level 2

Collecting Payments from PayPal through Paypal Bank Feed

I have a client who uses the Paypal bank feed. From all the research I've done the general consensus seems to be that Paypal is a pain and it would be better not to use the feed. However, that's not an option my client wants to entertain.

My client receives payments through Paypal and most advice I'm seen says to just Add the payment from the feed. It will create a Sales Receipt and that's all there is to it. However, this client creates invoices then receives the payment. My question is this, do I then just Match the payment in the feed? I don't want to Add it and create a Sales Receipt since there is already a corresponding Invoice. Or do I need to treat it the same way I would a Checking Account and create a deposit? 

QuickBooks Team

Collecting Payments from PayPal through Paypal Bank Feed

Hello, @Blondimlb.


Thanks for joining the community. Let me share with you some insights about bank feed in QuickBooks Online. 


There isn't a need to create a checking account and deposit the amount. All you need to do is match the transactions to the existing invoice so that it won't create a duplicate. 

Here's how:


  1. Go to the Banking tab located on the upper left side. 
  2. Choose For Review tab. 
  3. Click the existing transactions and review the Records found


     4. Hit Match


For more information, please browse this article: Match and categorize bank transactions


All transactions you've matched, split, and add will move to the Reviewed tab. This tab, where you can edit matched or added transactions downloaded from your bank after you review them in QuickBooks Online. Also, you can Undo the transactions. For the detailed guide about the process, check out this article: Unmatch or move bank transactions after reviewing them.


Feel free to leave a comment below if you have follow-up questions. I'm always here to help. 

Level 2

Collecting Payments from PayPal through Paypal Bank Feed

Thank you for your prompt response. I just want to confirm that this is the correct work flow for the Paypal bank feed. 

Level 11

Collecting Payments from PayPal through Paypal Bank Feed


Explore this connector and notice for any difference to the native PP connector.


Hope it helps.

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