How To Categorize PayPal Transactions in QuickBooks Online

QuickBooks Online tutorial on how to treat PayPal Transactions, we explain how to link a PayPal account to QuickBooks Online and how to categorize the transaction in the checking account, and in the PayPal account.

[@user-ov9hp2gv7c]

Hello how about the reverse payment in paypal?

[@ClaudiaXperts]

Just categorize as refund which is a conter income account

[@khalidhasan3528]

Good lesson. Thank you

[@ClaudiaXperts]

Glad you liked it!

[@tammy3699]

So hopefully I understand this correctly ...any transaction in the checking account that has to do with Paypal and PayPal credit (the payment to the PP Credit) is categorized as a "Transfer" , in PayPal's account, all transactions are categorized as expenses or income when they originally hit the account?

[@ClaudiaXperts]

That is correct.

[@florak1087]

Another great video, Claudia. I am new to the Paypal system for this new client that I have and this answered my questions. Except for one. Can you show some reports and explain the details of them if my client has questions about how to visualize what he has made. Thanks so much.

[@ClaudiaXperts]

Check my recent videos on Balance Sheet, Profit & Loss, and Statement of Cash Flow

[@philipme2073]

Thank you so much sweetheart

[@ClaudiaXperts]

You are welcome!

[@selkirksnowbike9917]

Are the transfers from paypal into my bank account categorized as sales of product income, or just as a transfer? Do the sales reciepts in my PayPal bank account count as sales of product income? I do not want to double my income

[@ClaudiaXperts]

The income is accept e in the PayPal bank account, then the money from PayPal bank going to checking is categorized as a transfer

[@terrabellasoap6714]

Hi Claudia! Thank you for sharing! I receive Paypal sales. What steps do I need to take? Should I first categorize or transfer from PayPal into my Business Checking?

[@ClaudiaXperts]

Yes, first accept in PayPal then match it in banking.

[@joandelmundo2005]

Hi, great video! I have a question though..how about if the money came from other source that's not linked in QBO? It's like the owner fund the Paypal from her own money. How do you categorize that?

[@ClaudiaXperts]

You don’t want to have a personal account linked to your business PayPal account , it gets extremely difficult. But you transfer to owner’s investment, and if there is an expense it is categorized as owner’s draw.

[@joandelmundo2005]

@@ClaudiaXperts thank you very much!

[@donnareyes5512]

May I know how to categorize in paypal the transfer to checking account?

[@ClaudiaXperts]

You categorize as a transfer and match it on the checking account.

[@tiarahyche488]

​@ClaudiaXperts I thought that we should begin the transfer from the checking account and match from the PayPal account. Is it actually the other way around as mentioned above?

[@mikemyburgh6135]

Hi Claudia, how do i record a Paypal to QuickBooks deposit in quickbooks.

[@ClaudiaXperts]

If it is integrated it will flow like a bank account. Just need to integrate. I have another video on PayPal integration.

[@mikemyburgh6135]

@@ClaudiaXperts I have the integration done. I need to know I categorize the payment from Paypal that has multiple transactions linked to it in QB . Does your video show this?

[@ClaudiaXperts]

@@mikemyburgh6135 Mike if you click on the match it will show the details of the transaction.

[@ClaudiaXperts]

@@mikemyburgh6135 Mike when you match your transactions to the PayPal transactions it will categorize it as a sale. I hope that answers your question.

[@virginiaromo9049]

Hi @Quickbooks Xperts, I have a question. The scenario is this, I received a payment on Feb. 18, the payment was on hold the same day and it was released the following month March 10. How should I record the transaction in February and March in Quickbooks?

[@ClaudiaXperts]

The PayPal income transaction will have a matching sales receipt dated for the day the sales originated, then the deposit dated for day it hit the account.

[@ranamohsin2884]

hello, I have a PayPal report in excel format.. i want to record transactions manually into quickbooks online..kindly help me ..

[@ClaudiaXperts]

You can import those transaction if you have a CSV form. You use QuickBooks Online right? You can book a 45 minute zoom call for a charge, you can call at 407 504 9828 to book the zoom call.

[@ranamohsin2884]

@@ClaudiaXperts i have csv file to import but..bunch of data. i dont know what to add ..i already imported the file to quick books online but data is not reconcile.. a lot of difference.

[@ClaudiaXperts]

@@ranamohsin2884 Rana you can call me at 407 504 9828 and we can set up a video chat tutoring session if you want I charge usd50.00 for a 45 minute meeting.

[@ClaudiaXperts]

I would not import manually, but if you have to, go to banking from the left hand side menu then click on the arrow next to the link card, then import from excel.