Hi there, hassan. Let me guide you through categorizing your PayPal transaction in QuickBooks Online (QBO).
Let's make sure how the transactions were recorded in QBO before categorizing them properly. We can start by entering the payment within the program. Here's what you should do:
- Choose the customer.
- Check the unpaid invoice.
- Select Payments to deposit/Undeposited fund account In the Deposit to field. Make sure the account type is Other assets.
- Save the transaction.
When finished, create a bank deposit entry to post the amount to the correct bank account. Here's the process:
- Select the correct bank account from the Account dropdown.
- Mark the payment to be deposited.
- Scroll down to the Add funds to this deposit section.
- Select the customer in the Received from dropdown.
- Choose the PayPal fee account.
- Enter the fee in the negative amount.
- Hit Save and close.
Once everything's good, you can match the bank deposit to the downloaded transaction with the net amount. Then, exclude the other split transaction that has a PayPal fee.
Moreover, visit these resources for managing bank transactions moving forward:
You can always get back to the Community space if there's anything else you need to know about handling bank-related tasks. I'm here to help all the time.
