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MKT22191
MKT22191
September 19, 2020
Solved

Paypal bank reconciliation - when statement shows "hold" balance

  • September 19, 2020
  • 1 reply
  • 0 views

Good morning QB Community!

 

I am working on PayPal bank reconciliation.  One of the "payment hold" in July was not released until mid-August.  As a result, the "ending available balance" on the July PayPal bank statement includes an extra "payment hold," which is not part of the actual sales income/expense transaction.    

 

In this situation, do I reconcile against the balance excluding payment holds/releases? 

Or is there a journal entry that I can create? 

 

Thank you! 

    Best answer by SarahannC

    It's nice to hear from you, MKT22191!

     

    Yes, you're right for excluding the payment.

     

    We'll have to reconcile the account without entering the amount on hold until it's posted. It can affect the balance of reconciliation in QuickBooks if we include it before releasing the payment. Once payment is downloaded and cleared, you can include the hold transaction then.

     

    For additional guide when reconciling account in QBO, you can use these articles:

     

     

    If you have further clarifications as you work on your PayPal bank reconciliation, please know that I'm always here to help you out. Take care and have a nice day!

    1 reply

    S
    SarahannCAnswer
    September 19, 2020

    It's nice to hear from you, MKT22191!

     

    Yes, you're right for excluding the payment.

     

    We'll have to reconcile the account without entering the amount on hold until it's posted. It can affect the balance of reconciliation in QuickBooks if we include it before releasing the payment. Once payment is downloaded and cleared, you can include the hold transaction then.

     

    For additional guide when reconciling account in QBO, you can use these articles:

     

     

    If you have further clarifications as you work on your PayPal bank reconciliation, please know that I'm always here to help you out. Take care and have a nice day!

      MKT22191
      MKT22191Author
      September 21, 2020

      Thank you @SarahannC for quick reply!

      S
      SarahannC
      September 21, 2020

      Hello MKT22191 ,

      Glad that I'm able to help you. Please know that you're always welcome to post here anytime. I'll be around to help you figure out your concerns.

      Enjoy your day, and stay safe always!

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