Thank you! I am a volunteer treasurer for a non-profit agency. I have ZERO training in accounting. I have learned Quickbooks through the school of hard knocks. You, sir, are the BEST teacher I have found when it comes to tutorials about using Quickbooks. I love how you highlight the area of the screen you are referring to. I love how you speak clearly and simply. I love how empowered I feel right now. You have gained a new subscriber!!!!
Hi Hector and everyone! Wondering if there is a best case approach for the following (seemingly very common) scenario: You send payments using PayPal, pulling the funds from a bank account also linked to QB, as opposed to using your PayPal balance. The transaction will show on both "accounts". I thought it would make sense to be able to match them, so you can reconcile both accounts, however when speaking with a QB support rep, they told me you can "only match transactions under the same bank account", thus making the option impossible, to match your PayPal account transaction, with the Bank transaction, even though they are the same. If you were to categorize both, the transaction would be duplicated, which is obviously a problem. The rep suggested I "exclude" categorizing the transactions from either the bank, or the PayPal account... It just doesn't seem right to me... Thoughts?
Great video and very eye opening. One of the struggles I have with my clients is the mixing of personal with business related expenses in PayPal. It’s difficult to wean them off commingling funds. One of the most frustrating things is that when I copy and paste the PayPal URL from the transaction memo line to view the PayPal details you need to login to PayPal and as far as I know PayPal doesn’t not offer third-party login capability for us accountants to log into a clients PayPal account to be self serving.
Wow, this is an extremely helpful video. I learned a lot. One follow-up question: what is the reasoning behind whether a PP transaction (or any) is categorized as a sales receipt or a deposit? Are there merits to one over the other?
Thanks Hector!! I had no idea that we could hook Paypal up as a regular bank feed!! I also didn't realize the difference between the two ADD buttons. Very handy.
thanks, Hector! I finally got my brain around this. Question: I am helping out a friend and he has categorized a bunch of transactions into the wrong category in PayPal. (I assume he has reconciled them) I want to move it to a new category as income. Can I do this simply and/or is there a video I can watch? Much appreciated. Gracias!
Thank you Hector! I have been using your recommended CSV to QBO addon and the entries are different in the journal. I have some testing to do to figure it out. GOOD INFO! You are helpful to many!
Amazing video, my only question is when the transaction is split, does the PayPal fee categorize the expense to bank fees? or can you choose where that expense goes to? thank you. This video was exactly what I was looking for.
First of all, thank you for your wonderful content and for trying to help with Paypal. It's such a nightmare as far as bookkeeping for a client goes....I constantly struggle with this! I do have a question though, hopefully you can answer: So if I accept the payment as a sales receipt, how do I go in and adjust for adding the sales tax and delivery fees? Should I just accept as a deposit and go in and adjust it from there. QBO doesn't give the option to go in and split the transaction if I do that on the normal bank feed screen. I appreciate any and all advise. Trying to finish up a 2021 nightmare! LOL!
Hector, great video. Are you able to do a video on reconciling your PayPal account? I connected my PayPal account to QuickBooks using the same steps but there is a difference between my beginning and ending balance.
Hi Hector! Thank you so much for your content, you’re so good at explaining. What if when you link PayPal, and the client had already deposited money from PayPal into the checking account, which is linked so already added to QBO? How do you not double deposit? I ended up deleting the original link and starting with a new transaction date
great video! Please cover more about Paypal - how to add missing information to a sales receipt that paypal imported into the REVIEW section or into the REGISTER (when customer's name or details of their purchase are missing). Thanks!
Hey Hector, this was an awesome video. I have a question, if I connect my paypal to my quickbooks account, will I be able to match those expenses from my bank transactions? I hope that makes sense thank you.
I love your incredibly clear tutorials! For a nonprofit that accepts donations via PayPal, would you recommend we just create a rule (as you described at about 13:25) that enters the "money in" as a deposit? We are currently hosting livestream music videos, accepting many very small donations via PayPal (intended as tips for the performers), and in some cases we are paying some of the performers via PayPal. Do you have any advice on how best to do this in QB?
@@HectorGarciaCPA Would you create a bill for amounts you want to pay OUT of PayPal? Or will that effectively create the transaction twice: first, my manual entry of bill and payment via my PayPal account, AND second PayPal's bank feed that includes money out?
Service income received to personal paypal account.Then he deposit the same from PayPal account to business's bank account.how to match this transaction from bank to invoice
I am learning a lot from your tutorials - thank you! I am a new Quickbooks user trying to get everything set up properly. I use Shopify, with Paypal as my merchant card processor. I cant integrate Shopify at this time because we also take international transactions. If they change that later, would I get duplicate entries from Paypal and Shopify?
Thank You Hector! My question is: My business has 3 accounts; Operating, Taxes, Profit. Can I allocate a portion of each sale into multiple accounts under a rule?. Looking forward to hearing back, thanks!
How do you match the item sold in Paypal to the Products & Services item in QBO so everything is categorized to the correct income account? We have 15-20 products and can't have them all go to one income account "Paypal Sales" or another account that you can edit in the Bank settings. The Square app in QBO allows you to map/match Square items to QBO products for easy recording. The way it looks now, we have to manually edit each sales receipt to add the correct QBO product
Thank you for your video. Very well done! One question: are there advantages to classifying a PayPal sale as a receipt rather than as a transfer ? I ask because all of customer receipts are already handled by my website and I will never send a receipt from QBO.
Hi Hector, i have watched you a few times, but was confused. I have now subscribed and clicked the bell. I would to say thank you for your videos. I have a problem with Paypal; it does not load any transactions and is so annoying. I have deleted and added PayPal, but still no feeds. Their CSV file is not at all compatible with QB (why?)....i need this info, can you suggest anything. I'm in UK using QB online plus.
I have my PayPal account linked to QBO, and on the Banking > Transactions page it shows the payer's name in the description column before I add the transaction. When I expand the transaction, the payer's name also shows in the Bank Detail followed by other data (transaction ID, corresponding PayPal link, etc.). Once I add the transaction, the payer's name doesn't show anywhere, neither the memo nor the description. As QB is receiving data of who the payer is from the bank, how can I set the memo and/or description to match the bank detail?
Your videos are fantastic!!! Can you offer best practice suggestions for how to sync paypal invoices so that products/services are also synced in quickbooks? Sales Receipts are only dumped into Paypal Sales.
As usual - very helpful. What about the PAYPAL app that added transactions directly to the books? I have a client who was connected that way, but the sync failed and I can not find how to reconnect. Thanks for any help
So helpful! This was exactly the information I was looking for. It does lead to another question which is: my PayPal income comes from sales through a website. In state sales have sales tax but out of state sales do not. Whether or not the customer pays sales tax is determined at the website level. How can I include sales tax in the PayPal records (through QB) so that when I need to remit to the state all the information is captured in one place?
Would you just be using the transfer option in QuickBooks online to show the money moving from Paypal to the checking account it is deposited to, so you can reconcile each account? What is the best way to show these transfers and deposits between the two accounts?
Hello Hector, thank you for this video, very helpful. I'm interested in this but when receiving payments from multiple currencies from Paypal. Furthermore, I like how you used the Rules so that all incoming sales are made as a Deposit automatically - time saving. I would like to use this rule, but a good proportion of the incoming are Purchase returns (let's say a fifth). Without using the 'Undo' and then recategorising as a Purchase return, is there a way that you can think of please to handle this scenario?
The problem with setting up Paypal as a bank feed is you get EVERYTHING from Paypal, including bills. If you are an online retailer, it's unlikely you need to add a customer. It would be too much work for a one-time sale. If there are A LOT of transactions, sometimes the bank feed is too unwieldy. In that case, I find it's better to make one big journal entry per month.
@@HectorGarciaCPA I want to ask some clarification, I connect my paypal to QBO, upon reviewing the transactions for categorization, I found out that Paypal amounts composed of different currencies: 1. How do I convert them to my home currency? 2. Is it normal in paypal to feed transactions on different currencies? 3. We are using USD in our paypal account, my home currency is CAD in financial reporting.
I'm really enjoying your videos, my husband is self employed and uses paypal for everything and I'm wanting to be a bit more organized for him. If my PayPal transactions include shipping and tax, will QB automatically categorize them like it does with the PayPal fee?
I would love to see a tutorial about properly 'transferring' funds from PayPal into Bank account. I enter all PayPal transactions as a sales receipt because my invoices are all pre-created in another software, with the option to pay through PayPal. It does the match well, but when I transfer the funds to my bank, it is doubled. Almost seems like when I do the match from the PayPal transaction, it is recording it in the bank account.
I should add we don't spend any money out of PayPal, we only use it to process payments from previously created invoices. So all income is transferred to the bank account.
When you have two or three Paypal transactions (mostly receving PayPal sales), is this a good approach? I see a transaction in Quickbooks, it's sales receipt (they are split deposit transactions -> Gross - Paypal fee = Net amount)....Is it ok to just add new customer manually and click "add", or do I need to create a new invoice and then match/close that invoice with a new Paypal transaction? I tried this way with creating invoices, but expenses are automatically transfered "undeposited funds"
Hector do you know why the download from paypal into QuickBooks for review would have a debit and credit for each transaction? Paypal account is used for sales of product should only be a credit - paypal fees.
At 5:40 I notice your Sales Receipt shows "Deposit To" field directed to "Undeposited Funds". My system is automatically set up this way as well. The problem is all my Paypal Income seems "trapped there" in my reviewed transactions and when I create a Customer Transaction History. While in my regular bank account deposit transactions I can see my funds posted in the appropriate bank. How do I get my Paypal Sales Receipts to end up in "PayPal Bank". We are a small nonprofit and much of our income comes from automatic monthly Paypal Sales that we designate as donations. We appreciate any advice you can provide.
@@leighbrett I gave up. I haven't touched it. I ended up disconnecting my Paypal and was looking for a new accountant too. If you have a solution that would be awesome. The end of the year will be here soon, and I will need to get a whole year's worth of transactions posted to do our year end reports.
René T I’m trying out saasant to do my data catch up will ,et you know how it goes but . Side note if you are manually posting sales receipts to undeposited funds then when you got to bank deposit to select the sales receipt make sure that window has deposit to paypal and not checking account PayPal should be set up as a bank
my quckbooks online doesn't add the paypal memo with the link to look at it directly in paypal. Also my sales receipts don't show the amount and gross amount minus the paypal fee. Is there a different way this is set up? My paypal fees and sales receipts come in all separately.
This connection is crap. If you have an e-commerce store then I recommend manually uploading PayPal transactions because matching becomes a nightmare. I mean, it would be too easy if QB pulled the sales ID from PayPal and then automatically matched it to the Sales ID that comes from Big Commerce/ other online stores.
Hi Hector. Thank you for another great video! In your video , is PayPal classified as a VENDOR ? Are Customers who pay via PayPal automatically added or updated? If you setup PayPal as a Bank Feed, and also have your bank account where PayPal funds are deposited, do you have duplicate deposits showing up in Quickbooks from PayPal sales?
Am I getting this right.. You download the paypal transactions and youve got to sit there and link you expenses and sales receipt... how is that even convenient. thats doing it manually one by one?.. and youve gone back an entire year plus more.. are you really going to go through each on separately..
Thanks for the video. It's very thorough. When setting up a PayPal account and asked what name to give the account, what if there is already an existing account? We've been manually entering the transactions and I don't see on the video if an existing account can be used. Thank you.
When I review the transactions before importing into the Paypal register, it shows the gross amount minus the PayPal fees for the net. The problem is that when I run a report on my customers (in my case donors), it subtracts the fees from their donations so they don't get full credit for their donation. Before, it used to import the Gross and fees on two different lines in the register. How do I get QBO to automatically add both the gross amount of a payment and the fee for the payment on two separate lines in the register instead of combining for just one net amount? Thanks in advance.
So here's my problem..... PayPal isn't actually a bank. Neither is Venmo. It's a Pass Through account where when money comes in, it's eventually transferred to my actual bank account, and when I spend money, that money is taken either from a credit card, or a bank account. How do I configure this so that it's not a double entry. This is driving my accountant and I crazy.
Very useful, I do need some support with eBay sales in PayPal. I just realized beginning last November sales tax was being charged to the eBay customer and PayPal is taking it out. I'm curious what the best practice is for this. Technically eBay charged the customers on my sales receipt and PayPal takes it out in a separate transaction. I had three sales for November and I added the three sales tax transactions charged me from PayPal but for some reason I'm still not reconciling my monthly statement. Somewhere I've done something wrong. A tutorial on this little issue would be a huge blessing. :)
@@HectorGarciaCPA Well I totally understand. I guess I just needed to watch your video and get my brain out of the high stress I went back in and looked at all three sales receipts and then I looked at all three sales tax transactions. On one of them I changed the payment method and when I changed it back to what the other two transactions had in the payment method - now it is reconciling! Whew, this stuff drives me crazy! Thanks for your videos, they are truly very helpful!
My version of Quickbooks online does not bring in transaction ID and other info from Paypal when I connect QBO with Paypal. Am I missing something. When I click on a deposit transaction, I have no drop down window that asks me if I want to create a Sales Receipt, Deposit, or Transfer. I'm also not getting Bank details link that you can click to take you to Paypal transaction.
Thanks so much for all the wonderful info you have taught me. What I seem to cannot find is adding ebay fees to the sales receipts as a (-) in order to show total profit for each item I sell on ebay. Can this be done or should I do it on just a monthly basis? Am I trying to complicate each sale by doing this? I inherited a huge amount of inventory and will need to show that on items sold, I am making a profit or on others I am not. Thanks in advance for any advice.
Hector, new here and I have Webgility but I’m confused about this PayPal thing. I don’t have them importing my PayPal transactions but they do import my eBay transaction detail as we only use PayPal with my eBay store. I use my regular bank account for my pos sales and website sales. Should I have webgility download my PayPal info as well?
Hector is this specific for QBO advanced or can you create sales receipts directly from the bank feeds in PayPal for qbo plus because I do not see this option currently. Could you please advise?
Question, becuase there is a descripancy in my head. My Paypalaccount is connected to my bank account (in this case a German one). When paying with paypal, it draws funds from the bank account and NOT from a paypal balance. So, if I connect Paypal with Quickbooks, how does Quickbooks now that the expense which will show as Paypal on my Bank account will not be a duplicate in Quickbooks? Or am I seeing this the completly wrong way?
How do you fix a different currency Paypal transactions on Quickbook Online? My Paypal is synced on QB and all transactions would appear in USD even though some of those transactions are in Pesos.
Question: I see the option to choose to make the transaction a sales receipt in my connected PayPal bank, however the option isn't available for my Venmo Bank account. Is there a workaround for this, or does it require that I manually enter a sales receipt for the transaction and then match it with the existing transaction? If that is the case, it may be easier to just enter the data straight from the Venmo account statement.
@@HectorGarciaCPA I almost did not expect a reply, because the post is a few years old, but I was pleasantly surprised! Thank you for the quick response! 😊 I'm disappointed that I have to make a receipt for each transaction but toggling windows isn't so bad. Your videos are excellent btw. I appreciate this resource!
How do you account for transactions like the Paypal withdrawals and deposits that have been done with the credit card? Like the instant withdrawals where there is a fee taken for using the card.
Hector, I have a scenario where there's a fixed price for the widget but the customer can make multiple payments. Now in desktop I had created an invoice for the full amount and then each time a payment came in I would apply the payment against the open invoice. Can this be done in QBO? Additionally, sometimes a customer may qualify for a discount however they have already paid in full. Do you have a demo of the refund that is created in PayPal?
Additionally I concur with James Jones from a couple of days ago that the Add button is definitely no longer there. I did go to the chart of accounts and tried connecting to the bank account that way (as I already had a PayPall Bank account) but it still hasn't come up for me to enter my login credentials.
1) you can create an invoice and do partial payments, yes 2) there is no mechanism to automate early pay discounts like desktop does 3) no demo on paypal refunds
Thank you! I am a volunteer treasurer for a non-profit agency. I have ZERO training in accounting. I have learned Quickbooks through the school of hard knocks. You, sir, are the BEST teacher I have found when it comes to tutorials about using Quickbooks. I love how you highlight the area of the screen you are referring to. I love how you speak clearly and simply. I love how empowered I feel right now. You have gained a new subscriber!!!!
Thanks! Awesome
Thank you, Bob and Hector. I, too, just started volunteering for a non-profit, and this video is a game changer!!!
The most comprehensive tutorial I've seen yet on PayPal bank feeds! Bookmarking this one for future reference and for sharing with diy clients
Awesome
as always really good ..... I would like to see a video about matching transfers thru the bank feed.
Second question, do you have a video showing how you manage/classify PayPal transactions that are funded by a credit card not PayPal funds?
I had been trying to do this for a week with no luck. Your tutorial worked perfectly! You're amazing! Thank you!!
:)
Very helpful. Thank you for posting Hector.
Hi Hector and everyone! Wondering if there is a best case approach for the following (seemingly very common) scenario: You send payments using PayPal, pulling the funds from a bank account also linked to QB, as opposed to using your PayPal balance. The transaction will show on both "accounts". I thought it would make sense to be able to match them, so you can reconcile both accounts, however when speaking with a QB support rep, they told me you can "only match transactions under the same bank account", thus making the option impossible, to match your PayPal account transaction, with the Bank transaction, even though they are the same. If you were to categorize both, the transaction would be duplicated, which is obviously a problem. The rep suggested I "exclude" categorizing the transactions from either the bank, or the PayPal account... It just doesn't seem right to me... Thoughts?
i've been using quickbooks online for a few months but still much to learn. you're videos are very helpful, thanks!
Thank you my friend! 34 seconds in and you solved my problem that Quickbooks help search couldn't answer (I'll come here first next time!)
Great!
Your videos are saving my sanity! I find them so helpful. Do you do any specific to nonprofits?
Patricia Smith I don’t touch non-profits
Great video Hector. However, QBO doesnt let you auto confirm for Paypal accounts now under the rule setting.
Thats right. Paypal rules are different
Great video and very eye opening. One of the struggles I have with my clients is the mixing of personal with business related expenses in PayPal. It’s difficult to wean them off commingling funds. One of the most frustrating things is that when I copy and paste the PayPal URL from the transaction memo line to view the PayPal details you need to login to PayPal and as far as I know PayPal doesn’t not offer third-party login capability for us accountants to log into a clients PayPal account to be self serving.
Wow, this is an extremely helpful video. I learned a lot. One follow-up question: what is the reasoning behind whether a PP transaction (or any) is categorized as a sales receipt or a deposit? Are there merits to one over the other?
I'd like to know this too. Not quite clear on that yet.
Great explanation! Have been struggling to get up to speed on how this connection works. Thanks!
Best Quickbooks and PayPal video. Informative, concise, and easy to understand. Please do more.
This was so good. I've been curious about this. Thank you for creating this video.
:)
Your videos are very helpful, clear and concise.
Thanks.
Thank you sir and I did watch until the end!
Thank you! My PayPal wouldn't match transactions until I changed the sales receipt's Deposit To, to Paypal. So helpful! Love your videos!
Thanks Hector!! I had no idea that we could hook Paypal up as a regular bank feed!! I also didn't realize the difference between the two ADD buttons. Very handy.
Yes, is crazy how things change and evolve.. it wasn’t like that last year.
This was very helpful. Thank you!
Great!
Thank you. Very helpful video! Taking on my 1st client using PayPal so this will help streamline things!!
Good luck
Very helpful, thank you!!! But how do you record a transfer from the Paypal account into the operating bank account?
would love to know also
Corey Atkinson did you ever find out
thanks, Hector! I finally got my brain around this. Question: I am helping out a friend and he has categorized a bunch of transactions into the wrong category in PayPal. (I assume he has reconciled them) I want to move it to a new category as income. Can I do this simply and/or is there a video I can watch? Much appreciated. Gracias!
Thank you Hector! I have been using your recommended CSV to QBO addon and the entries are different in the journal. I have some testing to do to figure it out. GOOD INFO! You are helpful to many!
:)
Wish me luck! I'm going to try to implement what I've learn!
Good luck
So helpful! Thank you Hector for all your videos
Thank you for your clear and concise presentation. Can you show how to import from PayPal a payment and apply it to an invoice?
Not on my list of videos to create, sorry
Great video! Thanks for the information! Looking forward to following this channel!
Amazing video, my only question is when the transaction is split, does the PayPal fee categorize the expense to bank fees? or can you choose where that expense goes to? thank you. This video was exactly what I was looking for.
Yes it does
This was great Hector - so helpful! Thank you for sharing.
First of all, thank you for your wonderful content and for trying to help with Paypal. It's such a nightmare as far as bookkeeping for a client goes....I constantly struggle with this! I do have a question though, hopefully you can answer: So if I accept the payment as a sales receipt, how do I go in and adjust for adding the sales tax and delivery fees? Should I just accept as a deposit and go in and adjust it from there. QBO doesn't give the option to go in and split the transaction if I do that on the normal bank feed screen. I appreciate any and all advise. Trying to finish up a 2021 nightmare! LOL!
Thanks for the video - Very Helpful!
:)
Hi Hector, thanks for the great video :) Do you have a video on PayPal bank reconciliation?
Not yet
This video made it super easy to understand, but I am a bit perplexed about when they come in as transfers or you are reimbursing an owner.
Is not easy
Hector, great video. Are you able to do a video on reconciling your PayPal account? I connected my PayPal account to QuickBooks using the same steps but there is a difference between my beginning and ending balance.
Brendan Kutcher reconcile a PayPal account is going to be a unique experience for every account, so that might NOT happen
Ok, thanks Hector. My experience so far is that reconciling PayPal is extremely difficult compared to a bank account or credit card.
Great help for small business entrepreneurs! Thanks, Hector!
My pleasure!
Hi Hector! Thank you so much for your content, you’re so good at explaining.
What if when you link PayPal, and the client had already deposited money from PayPal into the checking account, which is linked so already added to QBO? How do you not double deposit? I ended up deleting the original link and starting with a new transaction date
great video! Please cover more about Paypal - how to add missing information to a sales receipt that paypal imported into the REVIEW section or into the REGISTER (when customer's name or details of their purchase are missing). Thanks!
Not possible with the built-in app.. you need to look at Sush.io or Webgilty for that level of detail/control
Thank you so much for this video! Helped so much!!
Thank you Hector! This is so helpful!
This was great. I have been watching your Videos so informative . Thanks so much.
I found it very helpful,thanks Hector👍
Thank you for your service! Your videos are super helpful
This was very helpful! Do you have to define the expense account for the fees somewhere?
Excellent video, thank you!
:)
Hey Hector, this was an awesome video. I have a question, if I connect my paypal to my quickbooks account, will I be able to match those expenses from my bank transactions? I hope that makes sense thank you.
Very much helpful... Carry on. Please make a video on how to sort the PayPal balance affecting statements by using the vlookup formula.
Awesome! Your videos are really helpful. 👍
I love your incredibly clear tutorials! For a nonprofit that accepts donations via PayPal, would you recommend we just create a rule (as you described at about 13:25) that enters the "money in" as a deposit? We are currently hosting livestream music videos, accepting many very small donations via PayPal (intended as tips for the performers), and in some cases we are paying some of the performers via PayPal. Do you have any advice on how best to do this in QB?
I think a rule would be best
@@HectorGarciaCPA Would you create a bill for amounts you want to pay OUT of PayPal? Or will that effectively create the transaction twice: first, my manual entry of bill and payment via my PayPal account, AND second PayPal's bank feed that includes money out?
Service income received to personal paypal account.Then he deposit the same from PayPal account to business's bank account.how to match this transaction from bank to invoice
I am learning a lot from your tutorials - thank you! I am a new Quickbooks user trying to get everything set up properly. I use Shopify, with Paypal as my merchant card processor. I cant integrate Shopify at this time because we also take international transactions. If they change that later, would I get duplicate entries from Paypal and Shopify?
what is the difference between entering payments from customers as sales receipts vs entering them through and invoice?
Thank You Hector! My question is: My business has 3 accounts; Operating, Taxes, Profit. Can I allocate a portion of each sale into multiple accounts under a rule?. Looking forward to hearing back, thanks!
Yes you cam move money to those
How do you match the item sold in Paypal to the Products & Services item in QBO so everything is categorized to the correct income account? We have 15-20 products and can't have them all go to one income account "Paypal Sales" or another account that you can edit in the Bank settings. The Square app in QBO allows you to map/match Square items to QBO products for easy recording. The way it looks now, we have to manually edit each sales receipt to add the correct QBO product
Its a great lesson, Thank you boss
:)
Thank you for your video. Very well done!
One question: are there advantages to classifying a PayPal sale as a receipt rather than as a transfer ? I ask because all of customer receipts are already handled by my website and I will never send a receipt from QBO.
what is the difference between sales receipt and the other option on the drop down menu like "deposit"
Hi Hector, i have watched you a few times, but was confused. I have now subscribed and clicked the bell. I would to say thank you for your videos. I have a problem with Paypal; it does not load any transactions and is so annoying. I have deleted and added PayPal, but still no feeds. Their CSV file is not at all compatible with QB (why?)....i need this info, can you suggest anything. I'm in UK using QB online plus.
I have my PayPal account linked to QBO, and on the Banking > Transactions page it shows the payer's name in the description column before I add the transaction. When I expand the transaction, the payer's name also shows in the Bank Detail followed by other data (transaction ID, corresponding PayPal link, etc.). Once I add the transaction, the payer's name doesn't show anywhere, neither the memo nor the description. As QB is receiving data of who the payer is from the bank, how can I set the memo and/or description to match the bank detail?
Your videos are fantastic!!! Can you offer best practice suggestions for how to sync paypal invoices so that products/services are also synced in quickbooks? Sales Receipts are only dumped into Paypal Sales.
You need a special app like Synderapp
As usual - very helpful. What about the PAYPAL app that added transactions directly to the books? I have a client who was connected that way, but the sync failed and I can not find how to reconnect. Thanks for any help
Excellent video, many thanks
So helpful! This was exactly the information I was looking for. It does lead to another question which is: my PayPal income comes from sales through a website. In state sales have sales tax but out of state sales do not. Whether or not the customer pays sales tax is determined at the website level. How can I include sales tax in the PayPal records (through QB) so that when I need to remit to the state all the information is captured in one place?
You can’t via this process
@@HectorGarciaCPA ok, that's good to know. Do you have a recommendation of how to address this issue? Thanks!
Would you just be using the transfer option in QuickBooks online to show the money moving from Paypal to the checking account it is deposited to, so you can reconcile each account? What is the best way to show these transfers and deposits between the two accounts?
Yes transfer works
Hello Hector, thank you for this video, very helpful. I'm interested in this but when receiving payments from multiple currencies from Paypal. Furthermore, I like how you used the Rules so that all incoming sales are made as a Deposit automatically - time saving. I would like to use this rule, but a good proportion of the incoming are Purchase returns (let's say a fifth). Without using the 'Undo' and then recategorising as a Purchase return, is there a way that you can think of please to handle this scenario?
Hello! This is so incredibly helpful! Why would one want deposit versus sales receipt or is it personal preference?
Preference
Great content! I hope you posted one on reconciliation.
The problem with setting up Paypal as a bank feed is you get EVERYTHING from Paypal, including bills. If you are an online retailer, it's unlikely you need to add a customer. It would be too much work for a one-time sale. If there are A LOT of transactions, sometimes the bank feed is too unwieldy. In that case, I find it's better to make one big journal entry per month.
tru leigh depends on the situation.. PayPal is very different per person
@@HectorGarciaCPA I want to ask some clarification, I connect my paypal to QBO, upon reviewing the transactions for categorization, I found out that Paypal amounts composed of different currencies:
1. How do I convert them to my home currency?
2. Is it normal in paypal to feed transactions on different currencies?
3. We are using USD in our paypal account, my home currency is CAD in financial reporting.
@@oscarhawan1447 it’s an issue dealing with multiple currencies and PayPal. There isn’t a sensible solution yet.
@@HectorGarciaCPA Thank you, hope the solutions with this concern will be addressed sooner.
I'm really enjoying your videos, my husband is self employed and uses paypal for everything and I'm wanting to be a bit more organized for him. If my PayPal transactions include shipping and tax, will QB automatically categorize them like it does with the PayPal fee?
No it doesn’t
Thank you! Great Info!
I would love to see a tutorial about properly 'transferring' funds from PayPal into Bank account. I enter all PayPal transactions as a sales receipt because my invoices are all pre-created in another software, with the option to pay through PayPal. It does the match well, but when I transfer the funds to my bank, it is doubled. Almost seems like when I do the match from the PayPal transaction, it is recording it in the bank account.
I should add we don't spend any money out of PayPal, we only use it to process payments from previously created invoices. So all income is transferred to the bank account.
When you have two or three Paypal transactions (mostly receving PayPal sales), is this a good approach? I see a transaction in Quickbooks, it's sales receipt (they are split deposit transactions -> Gross - Paypal fee = Net amount)....Is it ok to just add new customer manually and click "add", or do I need to create a new invoice and then match/close that invoice with a new Paypal transaction? I tried this way with creating invoices, but expenses are automatically transfered "undeposited funds"
This nethod works just fine
Hector do you know why the download from paypal into QuickBooks for review would have a debit and credit for each transaction? Paypal account is used for sales of product should only be a credit - paypal fees.
What about importing invoices from paypal into quickbooks? Do those count as transactions?
At 5:40 I notice your Sales Receipt shows "Deposit To" field directed to "Undeposited Funds". My system is automatically set up this way as well. The problem is all my Paypal Income seems "trapped there" in my reviewed transactions and when I create a Customer Transaction History. While in my regular bank account deposit transactions I can see my funds posted in the appropriate bank. How do I get my Paypal Sales Receipts to end up in "PayPal Bank". We are a small nonprofit and much of our income comes from automatic monthly Paypal Sales that we designate as donations. We appreciate any advice you can provide.
René T did you figure this out- I’m also helping a non profit catch up it’s books and was hoping to use this trick to speed up vs manual data entry
@@leighbrett I gave up. I haven't touched it. I ended up disconnecting my Paypal and was looking for a new accountant too. If you have a solution that would be awesome. The end of the year will be here soon, and I will need to get a whole year's worth of transactions posted to do our year end reports.
René T I’m trying out saasant to do my data catch up will ,et you know how it goes but . Side note if you are manually posting sales receipts to undeposited funds then when you got to bank deposit to select the sales receipt make sure that window has deposit to paypal and not checking account PayPal should be set up as a bank
René T are you reconciling your payable bank account ?
Excellent video tutorial!
Glad you liked it.
my quckbooks online doesn't add the paypal memo with the link to look at it directly in paypal. Also my sales receipts don't show the amount and gross amount minus the paypal fee. Is there a different way this is set up? My paypal fees and sales receipts come in all separately.
This connection is crap. If you have an e-commerce store then I recommend manually uploading PayPal transactions because matching becomes a nightmare. I mean, it would be too easy if QB pulled the sales ID from PayPal and then automatically matched it to the Sales ID that comes from Big Commerce/ other online stores.
Hi Hector. Thank you for another great video! In your video , is PayPal classified as a VENDOR ?
Are Customers who pay via PayPal automatically added or updated? If you setup PayPal as a Bank Feed, and also have your bank account where PayPal funds are deposited, do you have duplicate deposits showing up in Quickbooks from PayPal sales?
No.. the transfers don’t download
Thank you!
Hector Garcia CPA if the transfers don’t downoald how do you reconcile the PayPal bank account ?
Am I getting this right.. You download the paypal transactions and youve got to sit there and link you expenses and sales receipt... how is that even convenient. thats doing it manually one by one?.. and youve gone back an entire year plus more.. are you really going to go through each on separately..
It take a really long time to work with paypal
Thanks for the video. It's very thorough. When setting up a PayPal account and asked what name to give the account, what if there is already an existing account? We've been manually entering the transactions and I don't see on the video if an existing account can be used. Thank you.
Laura Lozano just pick it from the list; no need to create a new one
@@HectorGarciaCPA Thank you, with your videos it's become easier than I thought.
Is "Connect to PayPal" under Add Account the same as the PayPal app connection?
Hector when you set up paypal with the bank feed does the COA need to already have Paypal Fees and Paypal Sales in it?
No, but you can create them
When I review the transactions before importing into the Paypal register, it shows the gross amount minus the PayPal fees for the net. The problem is that when I run a report on my customers (in my case donors), it subtracts the fees from their donations so they don't get full credit for their donation. Before, it used to import the Gross and fees on two different lines in the register. How do I get QBO to automatically add both the gross amount of a payment and the fee for the payment on two separate lines in the register instead of combining for just one net amount? Thanks in advance.
So here's my problem..... PayPal isn't actually a bank. Neither is Venmo. It's a Pass Through account where when money comes in, it's eventually transferred to my actual bank account, and when I spend money, that money is taken either from a credit card, or a bank account. How do I configure this so that it's not a double entry. This is driving my accountant and I crazy.
PayPal is very much a bank for accounting purposes, it can hold balances
@@HectorGarciaCPA yes, but if it's not, like Venmo, I have to figure out how to configure it. Any suggestions. Venmo is especially problematic.
Very useful, I do need some support with eBay sales in PayPal. I just realized beginning last November sales tax was being charged to the eBay customer and PayPal is taking it out. I'm curious what the best practice is for this. Technically eBay charged the customers on my sales receipt and PayPal takes it out in a separate transaction. I had three sales for November and I added the three sales tax transactions charged me from PayPal but for some reason I'm still not reconciling my monthly statement. Somewhere I've done something wrong. A tutorial on this little issue would be a huge blessing. :)
It’s hard to answer like this.. I would Need to look at your specific use case and make recommendations, sorry.
@@HectorGarciaCPA Well I totally understand. I guess I just needed to watch your video and get my brain out of the high stress I went back in and looked at all three sales receipts and then I looked at all three sales tax transactions. On one of them I changed the payment method and when I changed it back to what the other two transactions had in the payment method - now it is reconciling! Whew, this stuff drives me crazy! Thanks for your videos, they are truly very helpful!
My version of Quickbooks online does not bring in transaction ID and other info from Paypal when I connect QBO with Paypal. Am I missing something. When I click on a deposit transaction, I have no drop down window that asks me if I want to create a Sales Receipt, Deposit, or Transfer. I'm also not getting Bank details link that you can click to take you to Paypal transaction.
Thanks so much for all the wonderful info you have taught me. What I seem to cannot find is adding ebay fees to the sales receipts as a (-) in order to show total profit for each item I sell on ebay. Can this be done or should I do it on just a monthly basis? Am I trying to complicate each sale by doing this? I inherited a huge amount of inventory and will need to show that on items sold, I am making a profit or on others I am not. Thanks in advance for any advice.
That’s a tricky one. A monthly adjustment is fine
Hector, new here and I have Webgility but I’m confused about this PayPal thing. I don’t have them importing my PayPal transactions but they do import my eBay transaction detail as we only use PayPal with my eBay store. I use my regular bank account for my pos sales and website sales. Should I have webgility download my PayPal info as well?
Very helpful video.
Hector is this specific for QBO advanced or can you create sales receipts directly from the bank feeds in PayPal for qbo plus because I do not see this option currently. Could you please advise?
Should be in all versions of QBO
Question, becuase there is a descripancy in my head. My Paypalaccount is connected to my bank account (in this case a German one). When paying with paypal, it draws funds from the bank account and NOT from a paypal balance. So, if I connect Paypal with Quickbooks, how does Quickbooks now that the expense which will show as Paypal on my Bank account will not be a duplicate in Quickbooks? Or am I seeing this the completly wrong way?
Its a mess
How do you fix a different currency Paypal transactions on Quickbook Online? My Paypal is synced on QB and all transactions would appear in USD even though some of those transactions are in Pesos.
at what point am I telling QB that this payment coming in goes to Donations/contributions for my non profit?
When it gets categorized
Hello Hector, I have a question. Is PayPal a checking account or a credit card account? Thank you
Bank account
Question: I see the option to choose to make the transaction a sales receipt in my connected PayPal bank, however the option isn't available for my Venmo Bank account. Is there a workaround for this, or does it require that I manually enter a sales receipt for the transaction and then match it with the existing transaction? If that is the case, it may be easier to just enter the data straight from the Venmo account statement.
Paypal has a different connection to QB than Venmo.. no workaround
@@HectorGarciaCPA I almost did not expect a reply, because the post is a few years old, but I was pleasantly surprised! Thank you for the quick response! 😊 I'm disappointed that I have to make a receipt for each transaction but toggling windows isn't so bad. Your videos are excellent btw. I appreciate this resource!
How do you account for transactions like the Paypal withdrawals and deposits that have been done with the credit card? Like the instant withdrawals where there is a fee taken for using the card.
Thats a transfer
I'm having trouble that the sales in PayPal are duplicated many times and not because they are added elsewhere. Just a glitch 😢 What do I do?
You might need to have a PRO look at your file to see what’s going on.
Hector, I have a scenario where there's a fixed price for the widget but the customer can make multiple payments. Now in desktop I had created an invoice for the full amount and then each time a payment came in I would apply the payment against the open invoice. Can this be done in QBO? Additionally, sometimes a customer may qualify for a discount however they have already paid in full. Do you have a demo of the refund that is created in PayPal?
Additionally I concur with James Jones from a couple of days ago that the Add button is definitely no longer there. I did go to the chart of accounts and tried connecting to the bank account that way (as I already had a PayPall Bank account) but it still hasn't come up for me to enter my login credentials.
1) you can create an invoice and do partial payments, yes
2) there is no mechanism to automate early pay discounts like desktop does
3) no demo on paypal refunds