Tracking Paypal in QuickBooks is very complicated. Paypal is a credit card processor, a sales system, a bank account, a loan provider and a money transfer tool.
There are so many different types of transactions that if you connect Paypal to your banking feed in QuickBooks you will quickly be overwhelmed.
For this reason we create daily summaries of certain parts of Paypal for you to help you account for it.
The examples below are for Shopify but it can work with any ecommerce provider.
Important: Create a Paypal Bank Type Account In QuickBooks First
If you use our Paypal Connection or if you are using Paypal's App you will have a BANK TYPE account called Paypal. In this case you should not use "Shopify Paypal Tendered" as the mapped account in Shopify Ecommerce and instead use the "Paypal" account.
Paypal Express Checkout
This journal entry removes the fees and loans from Express Checkout transactions. Note it does not track the deposit from Paypal to your checking account so we keep the balance in the Shopify Paypal Tendered Account.