I am having a similar quandary. When both paypal and bank are connected to QBO, and a paypal expense draws from your bank account, I had thought the categorisations should be as follows:
1. that bank transaction be categorised as a "transfer to paypal account"
2. the paypal transaction to be categorised normally eg "expense".
Or is this unnecessary and you should just categorise the paypal transaction and "exclude" the bank transfer transaction?
