Banking

I appreciate the further clarifications, @Bdonahue. 

You're correct that we can't exclude the transfer transactions. We'll need both sides of a transfer transaction to categorize it as a single entry. I can share a step-by-step guide to help manage and match these older transactions in QuickBooks Online (QBO) without causing discrepancies in your balance sheet. 

To clarify the six-month rule of matching older transactions, it means that if there are old transactions, QuickBooks will stop automatically suggesting that there's an existing record within QBO that you can match with the downloaded real-life transaction. You can still utilize the Find match button to find the existing record. However, since you've clarified that there's no corresponding record for the transfer, it's possible that your client wasn't able to record one within QBO to match the real-life transaction. 

To bypass the six-month rule, you can utilize the Transfer feature within QBO. What this feature does is that QuickBooks will suggest that the movement of funds from your client's bank account is a pair to a corresponding transaction in the PayPal account. When creating a transfer record within QBO, the software will match both sides of the transfer regardless if it's beyond six months and recognize them as a single entry. I'll outline the steps below and add screenshots for visual reference. 

1. Identify the details of the transfer from your client's bank account to PayPal, including dates and amounts. 
2. In your QBO account, go to the +New button.
3. Select Transfer from the OTHER column. 
4. Choose the appropriate bank accounts from the Transfer from and Transfer to drop-down menus. 
5. Enter the Transfer amount. 
6. Ensure to choose the exact date of the transfer.
7. Add details of the transaction in the Memo field.
8. Select Save and new (or Save and close). 
   
9. Go to the Bank transactions page. 
10. Select the blue tile for the bank or PayPal account. 
11. Find the transfer transaction. (You can quickly find the entry since QuickBooks will automatically suggest Paired to another transaction for the transfer.)
12. Select Record transfer.
    

     

Should you encounter reconciliation issues in QBO after this, let me add these articles as guides: 

• Fix issues the first time you reconcile an account in QuickBooks Online
• Fix issues at the end of a reconciliation in QuickBooks Online
• Fix issues for accounts you've reconciled in the past in QuickBooks Online

You're always welcome in the Community should you have further updates on recording and matching transfers in QBO go. We're committed to offering ongoing support. Take care.