Easy Fix - PayPal Refunds Missing in QuickBooks Online Bank Feed. Bookkeeping Problems Solved.

I love using QuickBooks Online for bookkeeping. You can find QuickBooks Online Simple Start here through my referral link: www.SmallBusin...
I don't know why PayPal and QuickBooks Online don't always play nice, but they don't! Lately, I have noticed that refunds processed through PayPal have not been carried forward to the QuickBooks Online bank feed. This will cause your PayPal balance in QuickBooks to be off and not reconcile. Actually, the same thing is happening to currency conversion fees too. In this short video, I will walk you through how to add these refunds (or conversion fees) to your PayPal account in QuickBooks so that every balances again! Bookkeeping issue solved!
You can find more bookkeeping and small business help on my website: www.SmallBusin...
This video is for informational purposes only and does not constitute tax or accounting advice.

[@BigHit9922]

Thanks!

[@florak1087]

Thanks Sarah. This was really helpful.

[@beckyjones6486]

Could you do a video on reconciling PayPal with in Quickbooks??

[@SmallBusinessSarah]

That's a great video idea, I will add it to my list, because I do have some good hints and tricks for that.

[@manjooKapur]

Thank you for a lot of information on the videos It's of great help. Question 1 - I use QBO & have downloaded the bank feeds for 2023. On 1/20/23 a payment was made to a client from Paypal account . In the Paypal account it shows description as Added funds from a bank account. The problem is the Bank Account transactions have been downloaded from 1/30/23 in QBO, how do I match the transaction of Paypal with the bank account? Question 2 - On 7/20/23 in Paypal account the payment made shows an error stating split amount. How do I fix this as this is downloaded transaction and is not a split transaction? Thank you!!!

[@SmallBusinessSarah]

With question 1, it sounds like you are missing a month of bank transactions. Can you download the missing month from your bank and then upload the missing transactions so that the 2023 bank transactions are complete? Or you could add the transactions manually. Question 2 - that error pops up occasionally and you are right, it has nothing to do with a split transaction. Usually I just wait a day or two and the issue resolves, or you could try a different browser or clearing your cookies. It's just a weird and random QB error that never makes any sense!

[@tonetweakers]

apparently, theres a check box in the paypal settings within quickbooks that is automatically checked off to not import paypal refunds when paypal is set up. this is one of the stupidest things i have ever seen, and ive seen a lot of stupid sht in my day. under what circumstances would anyone want to report income that's been refunded, and pay taxes on those refunds? can someone, anyone, please explain this? this is one of so many annoying things about quickbooks. thank you so much for posting this video as QB tech support has pretty awful.

[@SmallBusinessSarah]

Hi! This is interesting, and yes, stupid, of course we want refunds to come through! I tried disconnecting my PayPal account from QB and then re-connected it to try and find this option, but it didn't appear for me. Have you seen this option or is this what QB support told you? Thanks for any additional info!

[@tonetweakers]

@@SmallBusinessSarah i saw the option with my own 2 eyes and pointed it out to a QB tech support rep as well. not sure where it was or if they could have removed it after my complaint, but it was definitely there a few months back.

[@wholeheartedbookkeepingllc1829]

Hi Sarah! I am working on a cleanup project with a lot of PayPal transactions. In particular, this individual has PayPal synced as a bank with PayPal Credit embedded within the transactions (aka Bill Me Later). Do you have experience with this? I am having to manually add these missing deposits ("transfers from Bill Me Later") in order to reconcile. However, I am not sure how to categorize these deposits. Would it depend on what account was used to pay the credit line off? I am so confused :(

[@user-ij6pc5ly5s]

Hi Sarah, My Paypal issue is with a sale and then a partial refund against that sale. The full sale amount is then ignored as a match? The refund does match in Paypal/QB but I'm left on how to then match the amount in QB of the full sale. Attempted to adjust the amount excluding the refund, but no joy. Again tried as a Bank Deposit in QB, no luck. It may be simple fix, but I'm baffled as to how to resolve this. I now have "manual" acceptance of payment set on web site rather than automatic which has stopped these previous issues. Any help most welcome.

[@SmallBusinessSarah]

I can't quite picture your issue, or maybe I just haven't seen it for myself. Sorry!

[@prince1designs762]

what are your thoughts on quickbooks desktop pro?

[@SmallBusinessSarah]

I haven't used Desktop in years! So I can't say!

[@jessicadirecto7080]

Hi I’m having an issue with refunds. But my issue is that I make a transaction through PayPal but using my bank or credit card. Those cancel out. But when I get a refund for one of these transactions then it shows in PayPal as me pulling that money out to credit card. But the refund never went to PayPal so it’s making me negative. I hope this made sense and you can help me. Thank you.

[@SmallBusinessSarah]

So those type of refunds, where you receive money as a refund will also not appear in the PayPal bank feed. So instead of adding in an expense, you need to add in a Deposit to PayPal.