Thank you for responding, but this manual solution is exactly what I am trying to avoid. My business depends heavily on PayPal and I cannot be wasting time on a manual solution when this should work automatically. 

As stated before I discovered that when there is a DEPOSIT into my Bank of America account from PayPal Bank, then matching does work. However, when there is a WITHDRAWAL from my Bank of America account into PayPal Bank account, then matching does NOT work.

This appears to be some kind of bug and I would like to hear of a workaround, or letting me know if it is being reported to the development team. I spoke to someone on the phone yesterday to describe my issue, but I did yet have the info I just provided in this post.

Anyone else having this issue with PayPal Bank?