#AMA: PayPal Bank Feeds in QuickBooks Online | Tuesday May 25, 8:00 - 10:00 am PT

Forum|Forum|5 years ago
May 21, 2021
7 replies
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Managing PayPal Bank Feeds can be tricky for any QuickBooks user, but Intuit Champion and Advanced QuickBooks Online ProAdvisor Steve Chase is here to help! Join Steve right here in this thread on Tuesday, May 25th, to get answers to your questions on:

Recording PayPal Bank Feeds Expenses and Transfers
Recording Paypal Sales transactions
Customizing the Connect with Paypal App Settings
How to Download Paypal Statements for Monthly Reconciliations

...and more!

Post your PayPal Bank Feed questions in the comments below and Steve will answer them live on Tuesday from 8 am - 10 am PT.

AMA

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TamikaB

Which do you reconcile first to not cause issues?

SteveChase

You can reconcile either the Paypal or the Checking account first based on your preference. If you are catching up on the monthly reconciliations, I recommend that you switch accounts and do them in tandem together. For example reconcile the Jan – Paypal statement then reconcile the Jan Checking before moving on to Feb. Then reconcile Feb – Paypal followed by Feb Checking. This way you won’t go to far into one account’s reconciliation while possible missing some issues in the non-reconciled account. Something you want to be careful of is often a Paypal statement might have a transfer date at the end of the month but its corresponding checking account transfer is dated on the first of the month. Since transfers in QBO can only have one date associated you may need to adjust the date depending on how it came through on the bank feeds.

A

asv

It seems that this is not the answer to the question above it.

We are having trouble with the Paypal feed. The shopify sales receipts paid with Paypal are synced with Webgility to Quickbooks. But we can't match many of them in the Paypal feed, we can just match the ones that do not have the paypal fee as an item in the invoice

I

incumbent

I have a client who uses Sales Receipts with PayPal. We can match some Sales Receipts on the PayPal Bank Feed but not others because of how the PayPal Fees are synced with Webgility. For instance, we can match a Sales Receipt on the PayPal Bank Feed when the PayPal Fee is not reported on a separate “PRODUCT/SERVICE” line. After matching the transaction, the PayPal Fee is automatically recorded as a separate transaction from the related deposit. On the other hand, we cannot match a Sales Receipt on the PayPal Bank Feed when the PayPal Fee is reported on a separate “PRODUCT/SERVICE” line. In both cases, the Sales Receipt, PayPal Fee, and Net Amount are displayed on the PayPal Bank Feed.

Do you know what causes this difference on Sales Receipts? If not, can you provide any resources I can refer to that will help guide my client to determine what causes this difference on Sales Receipts? How do we ensure PayPal Fees sync with Webgility so we can match transactions on the PayPal Bank Feed?

SteveChase

Hello, This seems to be a Webgility mapping with the PayPal fees. I know with Webgility it auto syncs and posts the sales receipt to QBO before the bank feeds come in. I would reach out to Webgility customer support to verify if you have the correct mapping setup for the Paypal fees. If you client is adding a fee, then maybe the solution might be to map it to a different income account because the Paypal fee will be a separate item that is automatically generated for each sale.

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Lissasembrace

I thought i connected PayPal with QuickBooks but not all transactions loaded. Is there a way to get those transactions to load without having to enter it manually?

SteveChase

If you just connected to Paypal bank feeds and you have a lot of transactions, please wait for the system to make the updates as it can take a moment to bring in all the transactions. The next place to check for missing transactions is to click on the Paypal bank feed tile and select the excluded tab to ensure no transactions were excluded. If you see any in the excluded table then you can use the undo button on the right to bring them back for review. You also want to click the update button in the upper right corner of the bank feeds to ensure you have the latest imports up to date. You'll also want to go into the register and view what's already recorded. One way to view the register is clicking "view register" from the chart of accounts lists. I would attempt to reconcile your first month for Paypal. After you get going on that you will see which ones are recorded and which ones are missing. There are ways to import missing transactions by importing a .csv file after you carefully format the file with the ones that are missing.

Ami_DAuthor

Good morning! I wanted to chime in here with a question from elsewhere in the community that I thought would be a great candidate for this discussion. It's quoted below:

"I have a client who uses the Paypal bank feed. From all the research I've done the general consensus seems to be that Paypal is a pain and it would be better not to use the feed. However, that's not an option my client wants to entertain.

My client receives payments through Paypal and most advice I'm seen says to just Add the payment from the feed. It will create a Sales Receipt and that's all there is to it. However, this client creates invoices then receives the payment.

My question is this, do I then just Match the payment in the feed? I don't want to Add it and create a Sales Receipt since there is already a corresponding Invoice. Or do I need to treat it the same way I would a Checking Account and create a deposit?"

SteveChase

In this situation where you are creating invoices in QBO you will need to receive payment on that invoice and make the payment in the Undeposited Funds account. Then the next step is to record a Bank Deposit (+ New Sign > Bank Deposit). From the bank deposit screen select the customer payment and then go down in the add funds section and create a negative Paypal fees amount for that item. You have to enter it with a negative in front of the number. Before you click save, verify that you are making the bank deposit to the Paypal register, have the correct date deposit, and the exact amount matches the Paypal deposits (Invoice Amount - Paypal Fees). You will then finish up by going back to the Paypal bank feeds and match that deposit. For example if the invoice is for $565 and there's -16.39 in fees you would create a bank deposit to Paypal for $548.61 which would match up.

Ami_DAuthor

I have another community question for consideration! Quoted below:

"I've connected our Paypal account through banking and overall the syncing seems to be working. However, I have noticed a couple of things missing and wondering if I set something up wrong or whatnot.

1. No Customer data is imported. Everything is under the description field on deposit. On any withdraws/payments, it simply says Paypal as the vendor and I need to look up each transaction within Paypal so see how to classify it. This also makes it unable to use rules.

2. Paypal Bank balance under charts is empty. There is a QB Balance but not bank balance. This I believe is why the Cash Flow widget on the homepage doesn't reflect the Paypal Bank either."

SteveChase

The Connect to Paypal bank feeds does not import customer names or any customer data. The idea is that you could run a report by Customers directly in the Paypal reports outside of QuickBooks. For users that need to enter customer details in QBO, then you will need to first create the customer in QuickBooks and then generate either an invoice or sales receipt first and then match up to the deposit. In regard to your chart of accounts not showing the bank balance, first check to see if there's a second Paypal account that you are looking at. The Bank Balance shows for all linked accounts to the bank feeds. You can spot this connection by a tiny yellow double arrow that appears next to the Type: Bank and Detail Type:Checking. See attached. This sounds like the account you are looking at is not connected to the bank feeds or there is an error in displaying the bank balance and the connection needs to be updated. When you are trying to classify the expenses and withdraws, first click anywhere on the row to expand the bank details of the memo. From there you will see the memo that will have what shows up on the Paypal statement. It sounds like you may be seeing Paypal as the Vendor but after careful looking you will be able to see the memo and then can enter the Vendor and classify the correct category. You only can see this memo after you click on each line. There's also a "Show Bank Details" option you can enable by clicking the little gear icon in the upper right corner of the bank feeds table. This will give you additional details that will help you see the notes that Paypal brings in from comments on invoices and purchases from your buyers and sellers.

T

TamikaB

Thank you.

Ami_DAuthor

One last community question to close us out for the afternoon!

"I'm having a problem with the Bank feeds matching. My invoices are not set up with the Paypal Fees. The client has paid the paypal fees. The amount that comes in from the bank feeds is the amount of the invoice net the fees. However, QBO will not match the invoice because it says the amount isn't correct. The amount QBO wants to match is the Invoice amount PLUS the paypal fees. Even though the net amount is the amount of the invoice. I don't want to have to change every invoice to include the Paypal fees. Not every customer is paying with Paypal. I've read the bank rules articles but don't see how to make that peel off the fees to allow the match. Has anyone found a way to force QBO to match the NET paypal deposit to the invoice?"

SteveChase

One method as I mentioned aleady in this thread is to use the undeposited funds as a way to move the full payment to undeposited funds and then make a match bank deposit to Paypal after subtracting the fees. If you wanted to force a match that does not match exact amount, you can have QBO look for a match for the invoice which will open up the available matches. You would click the customer payment and then at the bottom of the match form you can enter the difference applied to the fees which will split the transaction.

Ami_DAuthor

That's a wrap for today! An extra special thanks to @SteveChase for taking the time to answer questions today!

For even more great details and expertise on taming PayPal Bank Feeds, be sure to check out Steve's article on the Community Blog.

We'll be back in the near future with more great discussions with Steve and our other Intuit Community Champions!

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