I know this hasn't been easy for you. www6.
One of the most popular online payment methods is PayPal. It is important to know how your transactions are recorded since PayPal operates differently from any financial institution.
You can link your PayPal account to QuickBooks Online using either the Sync with PayPal App or the PayPal Bank Feed. Each has a slightly different operation and imports various transaction information. Please see the following information below for the advantages and limitations of these two connections.
Sync with PayPal App:
- Detailed Sales transactions
- Sales Receipts are automatically generated
- Customer details are imported automatically
- Sales Tax and PayPal Fees imported
- Expenses import to the default category
- Transfers import to the default category
- Inventory not synced
- A long list of transactions that do not integrate
PayPal Bank Feed:
- Detailed transfer and expense transactions
- More control over categorization
- Review before importing
- Less detail on sales transactions
- Sales receipts must be entered manually
- PayPal fees must be entered manually
If you're using the Sync with PayPal app connection, the PayPal sales are automatically imported to QuickBooks Online as a sales receipt. To prevent duplication, you don't have to create a sales receipt manually. Also, there isn't any option to exclude PayPal Sales with this connection since the transactions are auto-imported.
If you want to change the default setting of your PayPal account, please follow the steps below:
- Login to Intuit App Center.
- Select the My Apps tab.
- Find the Sync PayPal app card.
- Select Settings.
On the other hand, connecting PayPal to the bank feeds is best practice if you receive payments from customers via PayPal. When you do this, transactions are downloaded on the Banking page and can be matched to those in QuickBooks. You can read this article for more details: Use the Connect to PayPal app.
I'm also adding this resource for future reference to learn more about reconciliation workflow in QuickBooks: Reconcile workflow.
If you have questions about QuickBooks Online (QBO), don't hesitate to leave a comment. We're always willing to assist.
