How to reconcile PayPal Transactions

This help guide article covers how to reconcile PayPal transactions. PayPal is used by different organisations in different ways. Many churches and charities connect a PayPal account to a bank account and use it as a way to make payments for online purchases (as an alternative or in addition to getting debit/credit cards) or making overseas payments. Other organisations use it as a way of accepting payments or as a till system. Most organisations set up instant payouts; others have a balance of cash in their PayPal account. Any number of combinations of the above are possible.

Setting up PayPal within ExpensePlus

If you are using your PayPal account for more than just making payments, then you will need to add PayPal as a payment processor - click here for more details.

Processing Purchases made using PayPal

Where you've set up your PayPal account in ExpensePlus, any payments using PayPal should be entered as a Business Card Purchase option on the Purchase screen against your PayPal account.

Processing other Payments made using PayPal

Where you are making payments from PayPal e.g. overseas payments (rather than out of a bank account), you should process purchases in the same way as you usually would through the expenses and payments process.

Then, when purchases are showing on the payment screen, you can go ahead and set up the payment on PayPal marking it as paid within ExpensePlus, as you usually would do, except in the confirmation popup, you will just need to change the 'bank account' to PayPal.

Downloading PayPal transactions

It's really important you download the correct report within PayPal. Once signed into your PayPal Business account, the instructions below cover the report that you need to download.

(1) click 'Activity' and then (2) select 'All Reports'

(3) Click 'Activity Download' on the left-hand side (Important: do NOT select 'statements')

(4) In the filter bar at the top of the report (see below), select:

• Transaction Type - select 'All Transactions'

• Date Range - select the range required

• Format - select 'CSV'

Then click 'create report'.

(5) Once the report has finished generating, click 'download'.

Importing PayPal transactions

Within the bank reconciliation screen, select your PayPal account and click 'upload transactions'. 

The upload process works similarly to a regular bank account, except that, each line on the statement will show as two transactions within ExpensePlus - one relating to the income and the other to the transaction fee deducted (where applicable).

Reconciling PayPal transactions

The bank matching process for PayPal transactions works similarly to a regular bank account - with the ability to remember and quick match transactions.

This means that once you have reconciled PayPal transactions for the first month, you won't need to manually enter these transactions for future months - instead, you can simply click the 'quick match income' button at the top of the match transactions screen.

Payments made using PayPal

For purchases that have been made using PayPal and payments that have been made from your PayPal, if the guidance above has been followed, then these should be showing on the right-hand table of the match transactions screen (and you can simply select the PayPal transaction on the left-hand table, and this will 1:1 match with the corresponding payment on the right-hand table).

Any payments that have been made but not recorded can be added by:

(1) selecting the transaction in the left-hand table of the match transactions screen;

(2) clicking the '+' button to the right of the transaction;

(3) select the transaction type in the popup and enter the payment details.

For recurring transactions that haven't been previously reconciled and auto-remembered:

Named Donations

(1) select the transaction in the left-hand table of the match transactions screen;

(2) click the '+' button to the right of the transaction;

(3) select the 'Named Donation' option in the popup and enter the details.

GASDS Donations

To reconcile contactless card donations that are £30 or under:

(1) select the transaction in the left-hand table of the match transactions screen;

(2) click the '+' button to the right of the transaction;

(3) select the 'GASDS Donation' option in the popup and enter the details.

Income Received

To reconcile income for an event or sales income (as well as contactless card donations over £30)

(1) select the transaction in the left-hand table of the match transactions screen

(2) click the '+' button to the right of the transaction

(3) select the 'Income Received' option in the popup and enter the details

Card/Payment Process Fee

To reconcile PayPal transaction fees:

(1) select the transaction in the left-hand table of the match transactions screen

(2) click the '+' button to the right of the transaction

(3) select the 'Card/Payment Processor Fee' option in the popup and enter the details

Reconciling transfers to/from PayPal on the main bank account statement

When you reconcile your uploaded bank transactions, select the PayPal payout on the left-hand table of your match transactions screen.

Click the + button, then, in the popup that appears, select the transaction type as 'Payout to/from Payment Processor', and then select your PayPal account.

Why is my PayPal statement not uploading?

• Date (each transaction must contain a date)
• Name (each transaction must contain a name)
• Type (each transaction must contain a type)
• Gross (each transaction must contain a non-zero amount)
• Fee (each transaction may contain a fee amount)

(additional columns can be present but won't be imported).

• The file format should be .CSV

To better understand the Bank Reconciliation functionality, please watch the module overview video here.