Negative PayPal balance on balance sheet

Thank you for posting here in the Community, @PRECIOUSs. 

You seem to have posted twice in this forum. Please click on this link to view my colleague's reply to the initial post: https://quickbooks.intuit.com/learn-support/en-us/reports-and-accounting/re-negative-numbers-on-bala...

If you have any further questions, you can always come here. The Community Team can assist you at any time.

No but u also picked up on something. PayPal is just a medium and it’s like the payments or were being made from a cr card so there were no deposits actually made into PayPal hence the negative balance. I just don’t know how to fix this though. 

Not fixed yet but i also picked up on something. PayPal is just a medium and it’s like the payments were being made from a credit card so there were no deposits actually made into PayPal hence the negative balance. I just don’t know how to fix this though. 

I appreciate your reply, @PRECIOUSs.

I understand the importance of seamlessly resolving discrepancies in your transactions within QuickBooks Online (QBO). Allow me to provide you with further information on this matter.

To address a negative PayPal balance resulting from payments made directly from a credit card, it is essential to review your financial records and accurately reflect these transactions.

Payments processed via a credit card linked to PayPal may not directly deposit into PayPal, leading to a negative balance if not correctly recorded. To resolve this issue, please consider the following steps:

• Verify Transactions: Review all transaction records in QBO for payments processed through PayPal and intended for credit card accounts. Ensure that these payments are not incorrectly showing as PayPal withdrawals.
• Correct the Accounting Records: Locate any transactions recorded as PayPal payments and change them to reflect the credit card payment.

In addition, this issue can be resolved by creating a journal entry to credit the affected accounts, ensuring that your books are balanced and accurate.

Before taking any action, I recommend consulting with your accounting professional. Your accountant can review your books and advise you on the best way to record the transfer based on your business needs. If you don't have an accountant, you can find one in our Resource Center.

To create a journal entry, here's how:

1. Click on the + New icon.
2. Choose Journal entry.
3. Fill in the required fields to create your journal entry.
4. Click on either Save and new or Save and close.

Here is an article you can check that provides helpful information about managing balance sheets in QBO: Understanding the Balance Sheet: Asset, Liability, and Equity

Additionally, if the bank reconciliation shows a negative value, which matches the negative amount on PayPal on the balance sheet, it is important to consider the opening balance before adding any transactions in QBO. For a detailed guide on this, please refer to this comprehensive resource: Fix issues the first time you reconcile an account in QuickBooks Online.

Moreover, feel free to visit or save these articles in case you need them in managing your transactions in QBO:

• Categorize and match online bank transactions in QuickBooks Online
• Learn the reconcile workflow in QuickBooks
• Undo or remove transactions from reconciliations in QuickBooks Online.

If you have any further questions regarding discrepancies in your entries, please do not hesitate to contact us. The Community is always available for you, @PRECIOUSs. Take care!