Quickbooks - Paypal Transactions

Treat Paypal just like another bank or charge account; when you enter a transaction in PayPal, enter the transaction in QB.

To transfer money from Bank account to PayPal: o Banking Transfer funds

In QB to record when a customer pays through Paypal:
o Customers, Rec Payments, Change the Pmt Method to PayPal, Save
o Banking, Make Deposits, Check the deposit going to PayPal, click ok, Deposit into

- change to PayPal, save.
To transfer funds from PayPal to your Checking Account and record the PayPal fee:

o Banking, Make Deposits – Deposit to: Checking Account,
o Received from – blank, From Account: PayPal, Amount = Pmt rec’d , next line on

the deposit , From Account: Bank Charge (expense account) = - (minus) the fee

for PayPal
o Total deposit = PayPal deposits – PayPal fee

To purchase equipment or supplies from PayPay:
o Banking, Write Checks – change the Bank Account to PayPal
o Or if you entered the invoice from Vendors, Enter Bills
o To pay the invoice – Vendor, Pay Bills, click the invoice to pay, at the bottom of

the screen Payment, change the date, Method, click on Assign check number,

change the Account to PayPal.
o Click on Pay Selected Bills, this will record the payment from PayPal.


Accounting For Success | PO Box 8998, Fleming Island, FL 32006 Janice@AccountingforSuccessJax.com