Recording bill payment refunds received via Paypal.

I'm here to help you handle this refund in QuickBooks Online (QBO).

First, identify the transaction corresponding to the refund in your PayPal account. Ensure you have the details handy, such as the date, transaction number, and amount.

Next, make a bank deposit in QBO to match it later in your bank feed. Here's how:

1. Go to the + New at the top right corner and select Bank Deposit under Other.
2. From the Account ▼ dropdown, choose the account you want to put the money into.
3. Select the checkbox for each transaction you want to combine.
4. Make sure the total of the selected transactions matches your deposit slip. Use your deposit slip as a reference.
5. Click Save and Close to record the transaction.

I would also suggest reaching out to your accountant to help you with choosing the correct account to use. Once the deposit appears in your bank feed, match it with the transaction you recorded in QuickBooks Online.

In the future, when reconciling your bank account in QuickBooks Online, ensure that the transactions match the corresponding deposits in your bank statement.

By following these steps, you should be able to accurately record and categorize the refund received via PayPal for bill payment in QuickBooks Online. If you have any further questions or encounter any issues, don't hesitate to post here again for assistance.