Thanks for joining this thread, radial.

I can guide you in matching the Paypal payment to the invoice in QuickBooks Online.

If the invoice is still unpaid, you can use the Find Match and Resolve Difference features. This will let you enter the PayPal fees in the expense account.

First, make sure that the invoice and payment amounts are the same. Then, enter a negative entry for the PayPal fees in the Add resolving transactions section. I'm glad to show you how:

1. Locate and click the online banking transaction to see the details.
2. Hit the Find match button.
3. Select the invoice, then make sure that the Transaction and Payment amounts are the same.
4. Turn on the Resolve Difference feature.
5. Under the Add resolving transactions section, fill in the needed details such as the Payee name, Category and enter a negative amount.
6. Ensure that the difference amount is zero and the Downloaded transaction and Total amounts match.
7. Hit the Save button.

To learn more about matching transactions, please visit this article: Add and match downloaded banking transactions.

However, if the invoice is already paid, makes sure to deposit the payment to the Undeposited Funds account. Then, add the PayPal fee in the Add Funds to this Deposit section.

I'll show you how:

1. Go to the Plus sign icon, then choose Bank Deposit from the pop-window.
2. Select the correct bank account in the first box a the top.
3. Scroll down to the Add funds to this deposit section.
4. Under the Account column, add the needed details such as the name and expense account.
5. In the amount, make sure to use a negative entry (ex.-32.12).
6. Ensure that the Amount at the top is the same with the one you receive.
7. Hit Save and close.

Once you go to the Banking page, it will automatically show as 1 Record found and you'll just need to click the Match button.

I'm including this link for future references: How to record bank deposits.

You can also check out the Firm of the Future site to learn more about product enhancements and tips to efficiently manage your business.

Please leave a comment below if you need any further information. I'm always here to assist if you have other questions.