I have both my regular bank account (both savings and checking) along with a PayPal "bank" in QuickBooks Online. I just created the QBO account today and imported transactions since 1/1/2020. Then I categorized all of the PayPal transactions. Whenever I receive funds via PayPal, I transfer them to my checking account. And I always pay for goods via PayPal using my checking account. How should I categorize the transfer of funds from my bank account to PayPal when I buy items? Should I record these as transfers? Or categorize them as payments to the PayPal bank?
