Connect to PayPal App for QuickBooks


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PayPal is a unique payment tool that is becoming ever more popular as customers and vendors become more comfortable with electronic payments.

 

PayPal can be viewed as a payment processor, or an invoicing/sales tool, or an online checking account or wallet, or all of the above! However, this versatility also means it can often be confusing and complicated to handle in QuickBooks.

 

In general we recommend customers treat PayPal as a ‘bank’ account within QuickBooks. This is also how our integrations including Connect to PayPal, are designed. By thinking of PayPal as a bank, you can (and should) regularly reconcile your balance in QuickBooks with your PayPal statement. It also means when you withdraw money from PayPal into a real bank account, or when you Pay with PayPal using a credit card, these scenarios should be treated as transfers between two accounts in QuickBooks (between your checking account and PayPal account, or between your PayPal account and your credit card)

 

With our Connect to PayPal app integration, we help make it easier to enter transactions from PayPal into QuickBooks, ensuring QuickBooks has your transaction details and helping you with monthly reconciliation. We will fetch your transactions from PayPal automatically, displaying them on the Banking screen in the “For Review” tab, allowing you to handle them just like a bank connection.

 

However, unlike regular bank connections, we are also able to fetch details on what you sold through PayPal and what you paid for, as well as PayPal transaction fees, resulting in more detail and accuracy for your transactions in QuickBooks.

 

If you have never used the banking section or have never connected a bank in QuickBooks before, we recommend you first go through how to Add and match Bank Feed transactions.

 

Now, let’s get you started. There are a couple of ways to connect — the choice is up to you. You can get the app when you are connected to QuickBooks, or you can also visit the QuickBooks App Store.

 

Let’s start with connecting from within QuickBooks. To start by connecting from the QuickBooks Apps Store click here

Setting up the Connect to PayPal app in QuickBooks

Login to your QuickBooks Online account.

Select Apps in the left navigation bar.

Search for Connect to PayPal

Select the Connect to PayPal app, then select the Get app now button.

On the following screen, select the Let’s do it button.

Then you will need to “Give Permission” for Intuit to pull data from your PayPal account.

Enter the email address associated with your PayPal account, and select Next.

If you do not already have an account, it will prompt you to create one

 

You must be the admin of the PayPal account in order to connect. Authorized users cannot give permission to connect.

 

NOTE: If you create a new account with PayPal, you will be taken away from the connection flow and will be required to navigate back to QuickBooks Online to start the connection process over again.

Enter in your PayPal credentials, select Log-in.

To authorize the sync, select Agree and Connect button.

Once the connection is established, you will then select Go back to Intuit.

Select the account in QuickBooks that will represent your PayPal account and select Next.

Generally, this is separate from your bank account and will be automatically created for you upon set up – “PayPal Bank.”

Select the Sales tax rate that will be the default applied to all imported Sales transactions, then select Next. (Only if tax enabled)

If you have historical PayPal transactions, select the date in which you would like to start importing from, and select Done.

 

You can import up to 18 months of historical transactions.

 

To prevent duplication, we recommend that you do not import from a past date range if you have already recorded your PayPal transactions through other means in that time period. This includes doing so manually.

You are now set up and will see the PayPal connection on the Banking screen.

How to Connect from the QuickBooks App Store

Go to www.intuit.apps.com and search for ‘Connect to PayPal’

Select Get App now

On the following screen, select the Let’s do it button

Then you will need to “Give Permission” for Intuit to pull data from your PayPal account.

Enter the email address associated with your PayPal account, and select Next.

If you do not already have an account, it will prompt you to create one

 

You must be the admin of the PayPal account in order to connect. Authorized users cannot give permission to connect.

NOTE: If you create a new account with PayPal, you will be taken away from the connection flow and will be required to navigate back to QuickBooks Online to start the connection process over again.

Enter in your PayPal credentials, select Log-in.

To authorize the sync, select Agree and Connect button.

Once the connection is established, you will then select Go Back to Intuit.

Select the account in QuickBooks that will represent your PayPal account and select Next.

Generally, this is separate from your bank account and will be automatically created for you upon setup – “PayPal Bank.”

Select the Sales tax rate that will be the default applied to all imported Sales transactions, then select Next. (Only if tax enabled)

If you have historical PayPal transactions, select the date in which you would like to start importing from, and select Done.

You can import up to 18 months of historical transactions.

 

To prevent duplication, we recommend that you do not import from a past date range if you have already recorded your PayPal transactions through other means in that time period. This includes doing so manually.

You are now setup and will see the PayPal connection on your screen.

You’re all set and ready to go!  If you’d like further details on managing your PayPal transactions using new Connect to PayPal app, check out the Connect to PayPal FAQ.

How to use the Connect to PayPal integration

Navigate to the Banking screen and select your PayPal account to review transactions

Your transactions are automatically downloaded from PayPal once every few hours and will appear as a list in the “For Review” tab. Any transaction that changes your PayPal balance will appear in the list including sales, expenses, transfers into PayPal and withdrawals out of PayPal. The transactions in the “For Review” tab do not impact your accounting until they have been added into your books.

Review transaction details retrieved from PayPal

By clicking on each row, you will see a summary of the transaction details of this particular transaction. What appears when expanded may differ depending on the type of transaction.

Handling sales through PayPal

Certain transactions through PayPal are classified as sales. Typically these transactions will also contain a fee element which you can see by placing your mouse cursor over the total amount on the transaction in QuickBooks.

 

You can choose to record the sale either as a Sales Receipt or a Deposit by using the drop-down selection. Sales Receipts are useful for recording detailed sales information like what was sold and what tax was applied, whereas Deposits can be simpler for just assigning amounts to certain accounts.

 

You can also change the customer associated with the transaction and edit the memo text.

Reviewing sales details.

If you wish to review or edit more details on the transaction, you can click the “Details” button next to the Add/Match button.

Editing details

For expenses and sales, you can edit the full transaction details before saving and adding the transaction into your books.

Selecting the right product/service category on your sale

QuickBooks will automatically select the right matching product/service category for each line item on your Sales Receipt. For items that cannot be matched, they will be categorized as ‘PayPal Sales.’ You can configure product/service categories in connection settings.

Changing your connection settings

You can edit your connection settings or disconnect at any time by going to “Edit Settings” on the PayPal account card

Main differences from PayPal Bank feed

Your transactions will contain more detail than typical bank transactions. You may need to reconfigure your bank rules due to the new details. Transactions come in automatically, usually within a day of appearing on PayPal. You can now save sale transactions as Sales Receipts including the customer, shipping, discount and sales tax information.

Main differences from the old version, Sync with PayPal

Your transactions will appear for review in the Banking tab rather than go directly into your books. This will allow you to ensure the accuracy of the transactions. You can use batch actions or auto-add rules to automate the review process, and match payments against existing invoices or sales receipts to prevent duplication.