P&L Showing duplicate sales for invoices paid through PayPal

Hi there, IanAdAstra.

Thank you for visiting the QuickBooks Community. Let me share insights on how QuickBooks Online (QBO) handles your PayPal transactions. I'll ensure you won't be able to see double transactions in your Profit and Loss report after following the details below. Then, you can view your entries as accurate.

When you connect your Paypal to QuickBooks Online, they import your sales, bank transfers, and expenses. When a sale is recorded in PayPal, it is synced over to QuickBooks Online as a sales receipt. It includes information like which item is sold and the quantity, discount, shipping, and tax. You can choose to record a sale as a Sales Receipt or a Deposit in QBO manually. Since you record it as a Deposit, you'll have to choose the right account in the category drop-down and if you select to record it as a Sales Receipt, you'll have to choose the product/service associated with the sale in the “Details” view. Each product/service in QuickBooks can be associated with different account categories (Income/Expense account).

Then, once everything is accurate, QuickBooks will automatically match your transactions from the downloaded entries from Paypal and manually recorded them in QBO. With this, I suggest clicking the Match link on the For Review tab instead of adding them to avoid double transactions. 

Here's how:

1. Find a downloaded transaction with the Match option in the Action column.
2. Note the Date, Description, Payee, and amount spent or received.
3. Select the downloaded transaction to expand the view.
4. Review the Matching records found in QuickBooks. This is the possible matching transaction you already entered in QuickBooks.
5. Select the link next to each match to get more details.
6. Make sure this is the correct match. In particular, review the Deposit to, Payment method, and Bank account fields on forms for the existing transaction in QuickBooks.
7. If this is the correct match, close the open transaction.
8. Select Match.

However, if you continue to notice double entries in QuickBooks Online or in the report, I recommend going to the Banking page. From there, you're able to exclude the duplicate one so your bank data stay accurate.

Here's how:

1. Go to the For review tab on the Banking page. Then, make sure you've selected the Blue tile with PayPal.
2. Select the checkbox for each transaction you want to exclude.
3. Click Exclude.

Once done, excluded transactions transfer to the Excluded tab. They won’t be added to QuickBooks or downloaded again.

Additionally, fees charged by PayPal are also brought over as an expense, so it is properly recognized and reflected in your accounts. Additionally, your bank transfers (from/to PayPal) and PayPal expenses are also appropriately handled.

Lastly, you may refer to this article to see information on how the Sales page gives you a great at-a-glance view of all the status of your sales transactions like open and paid invoices: View sales transactions.

Please know that you're always welcome to click the Reply button below if you have any other concerns about transactions that appear on the P&L report. Wishing you and your business continued success, IanAdAstra.