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Level 1

Reduce PayPal account balance

Do not have auto feeds or deposits.

Wholesale payments come in via PayPal.  Invoices are created and in Receive Payments - I set the preference to deposit money into PayPal because that is where the money actually is.  In my accounts list I have my bank account and a paypal account.  When I transfer money out of PayPal I tell it to transfer the money my bank account which, of course, increases the balance.  I select the "from account" to be the wholesale account.  So how do I reduce the PayPal account balance in my QB?

Perhaps I should not have told Receive Payments to put the money in PayPal as it only records it in my QB PayPal account, but the money is not yet in my account, just in PayPal (not transferred yet).

Confused as to how to record the PayPal payment in QB when I don't have the money transferred yet from PayPal.  And how to deposit money transferred from PayPal to my checking account and reduce the QB PayPal account.

Solved
Best answer 02-03-2019

Accepted Solutions
Level 15

Re: Reduce PayPal account balance

You use Receive Payment, because you need to show an invoice is Paid.

 

You don't need to use Invoice when the date of the sale is also the date of the payment; that is Sales Receipt as One Step. Invoice and Payment are Two Steps, to allow for Date differences: invoice = the Sales date and Payment = the Paid date.

 

And yes, using a Bank account to manage PP is perfect. As you noted, that is where the money went, first. You also need to Reconcile that account in QB to the PP balances from the statement or transactions reporting from PP.

 

And moving your money is never Income, again. The Sale made it income. Your "from Account for the Checking download is the PP bank. Or, make your own transfer entry, first, as @Kristine Mae Noted. Either method is fine: between these two Bank Type accounts. Not income or expense, again.

View solution in original post

3 Comments
QuickBooks Team

Re: Reduce PayPal account balance

Hey there, ProfitStrategist.

 

You can transfer funds from paypal to the bank account.

 

Here's how:

  1. Go to Chart of Accounts.
  2. Right-click on the Paypal account, then choose Transfer Funds.
  3. Click the TRANSFER FUNDS TO drop-down arrow, then choose the bank account,
  4. Enter the amount in the TRANSFER AMOUNT field.
  5. Click Save & Close.

In case you have other concerns, you can always visit the Community. 

Level 15

Re: Reduce PayPal account balance

You use Receive Payment, because you need to show an invoice is Paid.

 

You don't need to use Invoice when the date of the sale is also the date of the payment; that is Sales Receipt as One Step. Invoice and Payment are Two Steps, to allow for Date differences: invoice = the Sales date and Payment = the Paid date.

 

And yes, using a Bank account to manage PP is perfect. As you noted, that is where the money went, first. You also need to Reconcile that account in QB to the PP balances from the statement or transactions reporting from PP.

 

And moving your money is never Income, again. The Sale made it income. Your "from Account for the Checking download is the PP bank. Or, make your own transfer entry, first, as @Kristine Mae Noted. Either method is fine: between these two Bank Type accounts. Not income or expense, again.

View solution in original post

Level 1

Re: Reduce PayPal account balance

Thank you ver much.  This is exactly what I needed - and thanks for being so clear.

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