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Level 1

Paypal and Undeposited Funds

Hi.

 

I am using the PayPal app in QBO. The Paypal app has automatically recorded all the sales and fees in the Undeposited Funds account. My problem is that I have already transferred funds from my PayPal account into my checking account, but now I still have a balance in my undeposited funds account. How do I fix the balance in my undeposited funds account without duplicating the deposit into my Checking account? There is probably a really simple solution... I'm very new to bookkeeping and trying to figure it all out. 

 

Thanks!

 

Solved
Best answer January 14, 2020

Best Answers
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QuickBooks Team

Paypal and Undeposited Funds

Welcome to the Community, @Jordanm

 

If you've created a separate deposit from PayPal to your checking account, this will result to undeposited sales. This will show a Not Deposited status on your payments. 

 

To resolve the balance from your undeposited funds account, create a bank deposit add the sales that were included on your deposit so that the balance of this account will be reduced.

 

Also, here's an article you can read to learn more about undeposited funds in QuickBooks Online: What’s the Undeposited Funds Account?

 

Please let me know if you have any other questions about your QuickBooks. It'll be always my pleasure to help. 

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24 Comments 24
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QuickBooks Team

Paypal and Undeposited Funds

Welcome to the Community, @Jordanm

 

If you've created a separate deposit from PayPal to your checking account, this will result to undeposited sales. This will show a Not Deposited status on your payments. 

 

To resolve the balance from your undeposited funds account, create a bank deposit add the sales that were included on your deposit so that the balance of this account will be reduced.

 

Also, here's an article you can read to learn more about undeposited funds in QuickBooks Online: What’s the Undeposited Funds Account?

 

Please let me know if you have any other questions about your QuickBooks. It'll be always my pleasure to help. 

View solution in original post

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Level 1

Paypal and Undeposited Funds

Hello. I'm having issues as well when matching PayPal payments from the bank feed to the invoice. Here's what I did:

1. Manually receive payment and record it to Undeposited Funds

2. Create Bank Deposit from Undeposited Funds to PayPal Bank account

3. From the Bank Feed, match the transaction to deposit made

 

Now, the problem is when I checked the register for Undeposited Funds, the PayPal fee is still recorded in the Undeposited Funds (this should reflect in PayPal Bank right?). In the PayPal Bank register, it only recorded the gross amount. Thus, incorrect postings. Can you please let me know what am I missing? 

 

Please see the screenshots.

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QuickBooks Team

Paypal and Undeposited Funds

Thanks for reaching out to the Community, @gracedc1992.

 

Your screenshots were very helpful for me to understand the process that you take in detail. When the Deposit shows in the Bank Feed, instead of choosing Add, press Find Match. You'll see the Bank Deposit you created to match. This will balance out your books and clear the Undeposited Funds account. Here are a few Community Articles that explain more about the process of Invoice Payments:

Let me know how this goes for you! I'll be here if you have further questions or concerns. Have a beautiful day.

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Level 1

Paypal and Undeposited Funds

I did choose Find Match and not Add. And as you can see in the last image, I have this issue on how these transactions are posted between Undeposited Funds and PayPal Bank like the PayPal Fee is under Undeposited Funds. In PayPal Bank, it did not include the PayPal fee which showed that it recorded at gross amount when it should be at net amount.

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QuickBooks Team

Paypal and Undeposited Funds

Hello gracedc1992,

 

I want to help you but this needs accessing your account to check further. I suggest contacting our Customer Support team to get this resolve. They can look into your account and can verify the cause of the issue.

 

You can follow these steps:

 

  1. Select Help (?) at the top right.
  2. Click Contact Us.
  3. Enter your concern in the field and hit Let’s talk.
  4. Choose to Get a callback.

 

In case you need some information about managing your QuickBooks account, you can visit this article. Help articles.

 

Keep in touch if you need anything else. I'm always here. Take care.

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Level 1

Paypal and Undeposited Funds

I am also noticing this happen. It goes all the way back to end of 2019

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Level 1

Paypal and Undeposited Funds

I am also having this issue. It goes all the way back to the end of 2019

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QuickBooks Team

Paypal and Undeposited Funds

Hello there, MiziDesignsLLC. 

 

When we create a Deposit to clear out our Undeposited Funds account, we can add the paypal fee as negative so that it'll match accordingly to the downloaded bank transaction. 

 

I'll show you how:

  1. Go to the +New button and click Bank deposit.
  2. Select the bank where the payment will deposited to.
  3. Check all applicable payments.
  4. Under the Add funds to this deposit section, select the paypal fee expense account and enter the fee in negative. 
  5. Click Save and close

From there, we can match the deposit to the bank transaction. You can check our this article for more details about matching bank downloaded transactions: 

I'm here if you need more help. Take care!

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Level 1

Paypal and Undeposited Funds

Hey,

 

I tried your method but it's not working. Here's what I did:

1. Receive Payment $300.00 and record under Undeposited Funds

2. Create 'Bank deposit' - selected the payment $300. Added the Paypal fee as negative in the Add funds to this deposit  section.

3. Went to PayPal bank feed to match the transaction to the d..eposit, but it won't match.

 

See screenshots.

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Moderator

Paypal and Undeposited Funds

Thanks for checking this with us, gracedc1992.

 

I appreciate the screenshots you've provided as it gives me an idea on how you enter the transactions. 

 

Your downloaded transaction and deposit didn't match because the the total amount of your deposit is not the same with your downloaded transaction. To fix this, you may want to exclude the fee from your deposit transaction and create a separate transaction for the $-13.50 Paypal fee instead.

 

First, edit the deposit transaction to remove the fee. You can use the Advance search to easily locate the Deposit transaction.

 

To do this, I'll guide you through the step by step process below:

 

  1. Go to the Search icon.
  2. Click Advance Search link.
  3. From the Search filter, choose Deposits.
  4. Click Search.
  5. From there you can see the list of deposits. Click the deposit to edit.
  6. Remove the Fee under Add funds to this deposit. This should leave you a total amount of 300.
  7. Click Save and close.

Let me share this guide to learn more about the search function in QuickBooks Online: Search for transactions.

 

Once the fee is removed from the deposit, you can create a separate one for it. Then, you can proceed to matching the transactions on your Banking page.

 

You can refer to this article for instructions on how to match bank transactions in QuickBooks Online: Categorize and match online bank transactions in QBO.

 

I'll be right here if you need help with anything about QuickBooks. You take care and have a great day ahead.

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Level 1

Paypal and Undeposited Funds

I removed the paypal fee in the Bank Deposit, then matched the deposit to the bank feed. However, the problem is Paypal fee. If you refer to the attached screenshot, the Paypal fee was left in the Undeposited Funds account. On the other in PayPal Bank account, only the gross amount was recorded without the Paypal fee. The amount should be at Net and not Gross. Why was the fee not recorded under PayPal bank account?

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Moderator

Paypal and Undeposited Funds

Hi, gracedc1992.

 

Allow me to help you further and get things sorted out. To better isolate the issue, you might want to open the PayPal fee transaction to see why it's posted to the Undeposited Funds.

 

If this is an expense transaction, you'll need to edit the posting account and choose a bank instead of Undeposited Funds. You can get more details in these articles in managing PayPal fees in QuickBooks Online:

 

Let me know how it goes by leaving a reply below. I'll be standing by to help you out.

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Level 1

Paypal and Undeposited Funds

Following the article you have provided, I don't see the Chart of Accounts in the Payments tab. See screenshot.

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QuickBooks Team

Paypal and Undeposited Funds

Thanks for keeping me updated about this concern, @gracedc1992.

 

I've got some clarifications to share so you can get past on this hurdle and match your transactions successfully in QuickBooks Online.

 

QuickBooks Online is dependent on the transactions that were transmitted from your bank account. They'll be posted in the system as to how it was being generated from the financial institution.

 

To better isolate this matter, I recommend checking the transaction that contains the PayPal fee. This is to verify if having it deposited to the Undeposited Funds was created manually, or was given by your bank.

 

If it was made manually, you may edit the account to the accurate one so it will match to your transactions. However, if it is a system-generated, you'll need to contact the PayPal Support Team. This is to determine the entries' mapping is correct and on why the fee is showing as a gross amount instead of a net.

 

You may also visit these references attached to learn more about using the Undeposited Funds account and on how to match your transactions in QuickBooks Online:

Know that I'll be right here if you have any other concerns. I'd be happy to lend a helping hand. Take care, @gracedc1992.

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Level 1

Paypal and Undeposited Funds

I am having the exact same problem with Paypal.  I have a Paypal transaction that did not automatically match to the Quickbooks Online transaction upon review. When I went to match it manually, the Paypal fee ( a negative amount) was left sitting in the undeposited funds account as if it needed to be deposited.

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QuickBooks Team

Paypal and Undeposited Funds

Hello there, MiziDesignsLLC. 

 

Let me clear things out for you. We can add the Paypal fee as negative when we create a Deposit to clear out your Undeposited Funds account. By doing so, it'll match according to the downloaded bank transaction.

 

Here's how:

  1. Select the +New button and click the Bank deposit.
  2. Choose the bank where the payment will be deposited to.
  3. Check all applicable payments.
  4. Under the Add funds to this deposit section, choose the PayPal fee expense account and enter the fee in negative. 
  5. Click Save and close

From there, you can match the deposit to the bank transaction. You can check this article for more details about matching bank downloaded transactions: 

Just click the Reply button if you need further assistance. I'm here to help. Have a great day.

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Level 1

Paypal and Undeposited Funds

I went through the steps you suggested and unfortunately I can't match the transaction.  I got the error message "Something is not quite right.  The downloaded and the selected transaction amounts don't match. To continue, resolve the difference." "The difference" that is being referred to, is the amount of the payapal fee.

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QuickBooks Team
QuickBooks Team

Paypal and Undeposited Funds

Let's perform some troubleshooting steps to match your Paypal downloaded transactions, Glenghg.

 

It's possible your browser's cache data is full or damaged causing you to encounter this error message. To better isolate if this is a browser issue or not, let's try accessing QuickBooks Online (QBO) using a private or incognito window. 

 

Here's how you can access private browser:

 

  • Google Chrome: Ctrl + Shift + N
  • Microsoft Edge: Ctrl + Shift + P
  • Firefox: Ctrl + Shift + P
  • Safari: Command + Shift + N

Then, try matching the downloaded bank transactions in QBO again. 

 

If it works, we can clear your browser's cache to delete those temporarily stored files and free some space on your browser's data. You can also do this task on other supported, up-to-date browsers to be thorough.

 

On the other hand, QBO is dependent on the transactions that were transmitted from your bank account. Then, they are posted in your account as to how it was being generated from the financial institution.

 

If the downloaded and the selected transaction amounts don't match, you can use the Resolve Difference button. This helps match your transactions by resolving its difference until it will be equal to zero.

 

Here's how:

 

  1. On the Banking page, go to the For Review tab.
  2. Select the transaction to open it and tick the Find other records or Find match button to open the Match transactions window.
  3. Then the Match transactions window lists all transactions within the date range, but you can narrow the results.
  4. Use options on the Show drop-down menu to specify the type of transaction you're looking for.
  5. If the transaction you're looking for is outside the default date range, select the From and To date fields to change the dates.
  6. For the amounts different, select Resolve Difference to open the Add resolving transactions field.
  7. Then add the Category and Amount (and, optionally, Payee) of a resolving transaction until the difference equals zero.
  8. You can also use the Add new transaction button to add multiple resolving transactions.
  9. Tap the Save button. 

I've got a link here where you can find articles about managing your bank transactions: https://quickbooks.intuit.com/learn-support/en-us/banking/07?product=QuickBooks%20Online.

 

Feel free to go back to this post if you need a hand with reconciling your accounts or any QBO related. I'll be here to help. Take care always. 

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Level 1

Paypal and Undeposited Funds

Good afternoon. I followed  the steps you gave me. I opened my browser in a different mode. I attempted to match the transaction again. I got the "Something is not quite right" message again. I selected the resolve difference button but nothing happened. QBO would not allow me to resolve the difference. I'm at a loss now because I have several transactions that are giving me this problem.

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Moderator

Paypal and Undeposited Funds

I appreciate your efforts in performing the steps provided, @Glenghg.

 

I've checked and verified that we have an ongoing issue in attempting to click the Resolve|Difference button in QuickBooks. 

 

Our Engineers are aware and in the process of making this their priority. I'd recommend reaching out to our Online Support so they can sign you up to receive email updates once this is resolved.

 

In the meantime, you may need to use a journal entry to resolve the transaction's difference. However, it is advisable to reach out to your accountant to ensure the accounts are properly recorded.

 

Please post again in the Community if you have other questions or concerns. I'm here to help. Take care and have a good one.

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Level 1

Paypal and Undeposited Funds

Hello,

 

I am using PayPal BANK (not the app) and when someone purchases an item it comes into the PayPal Bank and shows as a sales receipt.  When I open the sales receipt it shows the payment method is PayPal and it is deposited into Undeposited Funds.  This doesn't appear to be change able.  Shouldn't it be deposited in the PayPal Bank?

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QuickBooks Team

Paypal and Undeposited Funds

Hello, @ckpremier

 

Thank you for posting in the Community. When the transaction is deposited into Undeposited Funds, you can proceed with categorizing the transactions on your Banking page. I'll guide you how: 

 

  1. On the Banking page, select the For Review tab.
  2. Locate and tap the transaction to open it.
  3. Select the Category or Match drop-down list and hit the new category from the list.
  4. Press Add to accept the new category and add the transaction.

 review.PNG

 review1.PNG

 

The transaction is added to the register and moved from the Reviewed tab.

 

You may also visit these references attached to learn more about using the Undeposited Funds account and on how to match your transactions in QuickBooks Online: 

 

 

Please don't hesitate to let me know how it goes by clicking the Reply button. If you should have additional questions, I'm just a click away. Have a great day and Take care!

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Level 1

Paypal and Undeposited Funds

QBO is fundamentally flawed in how it operates and integrates with PayPal. I have the exact same issue as everyone else in this thread, AND QBO will not match my bank transactions with the corresponding PayPal transaction (because QBO can't find them in PayPal Bank feed/register). I use PayPal for invoicing and there are so many issues in QBO because of this and no, it is not easy or desirable to change my invoicing method.

 

These issues have caused me considerable wasted time, effort and money. I really wish the QBO development team would address these issues at the root cause so their support team would not have to jump through all these hoops to help frustrated customers like myself.

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Level 1

Paypal and Undeposited Funds

Why is it even necessary to use the undeposited funds account? 

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