How do I record a transaction that was done without using PayPal's balance, but paid via PayPal using a bank account/credit card. It appears in both accounts. Thanks.

Glad to see you in the Community, support40.

We’ll have to enter an expense to track the transaction. Then, create a transfer to record the payment to your PayPal account.

With just a few clicks we can accomplish this task in QBO. Here’s how:

1. Tap the New menu to select Expense under Suppliers.
2. Select the name whom did you pay the entry in the Payee drop-down.
3. Fill in the remaining field boxes.
4. Go to the Category/Item Details section and then enter the transaction’s information including the amount.
5. Click Save to keep the changes.

To transfer:

1. Choose the New menu to select Transfer under Other.
2. Click the Transfer Funds From drop-down to choose the bank/credit card.
3. Key in PayPal in the Transfer Funds to field and then type the amount in the Transfer Amount box.
4. Click Save and close.

I’m also adding an article that provides an overview of how transactions are tracked using PayPal: A New Way to Bring PayPal Transactions Into QuickBooks.

If there’s anything else I can help you with, post a comment below. I’ll be right here to assist further. Enjoy the rest of the day.