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JamesC49
September 6, 2023
Question

QBO Paired Transactions in PayPal

  • September 6, 2023
  • 1 reply
  • 0 views

I have PayPal set up to automatically withdraw the amount needed to cover a transaction from our company checking account. When trying to categorize the transaction in PayPal. I have a transfer and a  payment to a vendor or other business paired together. I have tried to unpair the transactions to allow me to categorize them correctly. For example, I  can categorize the expense part of the transaction properly. However when I try to categorize the transfer from the bank  I receive an error message stating this transaction has already been accepted and QBO will not accept the confirmation that it is a transfer from our bank. Does anyone have a solution for this?  If I accept the transaction as a transfer will it automatically separate the transactions into their proper categories?    Thanks, James

 

1 reply

JenoP
JenoP
September 6, 2023

I'll help with your questions about banking and PayPal transactions in QBO, James.

 

The Connect to PayPal app syncs all bank transfers from PayPal into the default bank transfer category known as "PayPal Funds Transfer Account". As of this moment, this category is not configurable.


Because of this, there is no option to assign separate categories. As a workaround, you'll want to exclude the transaction in the For Review tab. Then, manually record the transaction so you can select the category that you want. 

 

Here's how to exclude a transaction: 

 

  1. Go to Bookkeeping, select Transactions, and then click Bank Transactions.
  2. Proceed to the For Review tab.
  3. Select the checkbox of the transactions to exclude.
  4. Click Exclude.

 

After that, manually record the transactions by clicking the + New button and select Expense or Transfer. Then, enter all the required details. Here's an article about this for more details: Exclude a Bank Transaction you Downloaded into QuickBooks Online.


Let me also share these articles for additional resources when managing PayPal transactions in QBO: Why Use Clearing Accounts in Your Accounting System for PayPal, Credit Cards, and Other Payment Channels?

 

Feel free to post any additional questions if you still need help with QuickBooks. Our commitment is to make sure that you receive the support you need.

J
JamesC49Author
September 6, 2023

Hello jenop2,

 

Actually, my problem is the reverse of your example. I am finding the paired transaction in my PayPal account. However, the workaround you provided may work the same as QBO appears to treat PayPal as a bank.  Since the funds are automatically transferred from our Bank account to PayPal I am working with old data which I have had to import with CSV files.  Thanks for your help.

 

 

J
JamesC49Author
September 6, 2023

This is an update ot my initial response to the workaround provided. The real bad news in your workaround is now I have several hundred entries that I have to delete and then manually reenter.

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