I inherited this business (nonprofit) QuickBooks Online account when I came into this new job, and I've discovered a number of issues I'm trying to fix.
When our monthly donations come through PayPal, they are automatically categorized as a "sales receipt" instead of a deposit, and they do not go into the correct revenue account. There is a "service" item for "PayPal Monthly Donations" which appears to link to the correct revenue account, but that's not even the one they're going to. They're all going straight into "PayPal Sales", which is messing up my ability to accurately track our fundraising and isn't useful to my record-keeping as I prefer to track sales by item instead of into a general bucket account.
I've seen that I can go in and manually change these receipts to a deposit when they come in each month, and then re-enter all of the information about what they donated and what the PayPal fees were, but this takes a long time, and I can't imagine doing it every month. I would like them to just show up as deposits to begin with, or at least to be going to the PayPal Monthly Donations revenue account instead of "PayPal Sales".
Why is it automatically classifying these transactions this way, and what can I do to change that?
Follow up question: Do I need to select "Cash goes back to PayPal" when I'm adding or correcting these donations? I noticed it mostly does this automatically, but some of them want to have cash go back to another of our accounts instead.
