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cpizzullo-pizzyp
March 7, 2024
Question

Paypal Account Types and how to account sync'd txns correctly

  • March 7, 2024
  • 1 reply
  • 0 views

Hi.  Just getting started in QBO and e-commerce in general.

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1.  We are going to use one Paypal account to pay vendor invoices, and another Paypal account to collect order payments from Shopify customers (using Paypal Clearing acct as well).  Anyway, we believe both of these accounts will be created as Bank: Checking types, correct?  We are already syncing the first Paypal account, as shown in next question.  The 2nd Paypal account has not been created yet since we're not taking orders until April.  We had researched that we should have separate accounts.

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2.  So the first set of Paypal txns came over synced (see attached).  These were invoices paid with a credit card tied to that Paypal account.  We have already categorized the expense on the credit card txn (say Product Development).  What do we do with these txns that came from Paypal?  What you see is the QBO default.
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Thank you so much for your reviewing, and any other tidbits in this area.
Chet

1 reply

A
AnneMariee
March 7, 2024

Hello there, 

 

Allow me to help you account for your transactions in QuickBooks correctly.

 

Firstly, your setup of the accounts as a Bank type is correct. However, I'd like to recommend consulting an accountant for the best advice on which detail type to choose.

 

Then, let's take care of the oversynced transactions. To do this, you'll need to exclude the duplicate from your bank feeds. I'll list down the steps below on how:

 

  1. Go to the For review tab.
  2. Tick the checkbox for each transaction you want to exclude.
  3. Click Exclude.

 

For more information on categorizing your transactions, please refer to this article: Categorize online bank transactions in QuickBooks Online.

 

You can also automatically categorize your transactions to have a more efficient process. Here's a guide on how to set them up: Set up bank rules to categorize online banking transactions in QuickBooks Online.

 

Let me know if you need further guidance in accounting for your transactions. I'll be here ready to assist you.

C
cpizzullo-pizzypAuthor
March 8, 2024

Actually, since the credit card is bringing over the transactions already, with vendor name, I've decided to remove this Paypal-for-vendor-payments altogether.  There really was no reason to have it.
Thank you for responding!

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