Recording payment transactions
Payment transactions are recorded as Expenses in QuickBooks Online. You have a choice of recording transactions in one of two ways, “Complete” or “Fees only.” To avoid double recording of the same transaction, once it has been recorded, a green check mark is displayed next to it. This check mark cannot be removed or the transaction submitted for processing to further protect against double entry.
Notification of the successful processing of a transaction:
Note: To record a payment to a vendor successfully, you must assign an expense account to that transaction. Our software remembers your choice, so you only need to do it once.
If an expense account is not assigned, you will see this notification message pop up:
In the example below, you have selected two payment transactions. One of them has assigned expense account, and the other does not.
You must assign an expense account for each new Payee. Remember, the system will memorize this mapping and store it for the next time.
You can edit your mapping of vendors and payees to specific accounts by going into Settings, and finding the “Vendor/Payee mapping” section. The editing process is reviewed in detail in “Vendor and Payee” mapping paragraph in this tutorial.
After clicking on the edit icon (Accounts), you can look for and select a specific expense account to be used for a payee.
Note: These account choices are your chart of accounts imported from your connected QuickBooks Online account.
After an account is assigned to the payee, the payment is ready to be processed into your QuickBooks Online account.
Warning: Assigning an account to a specific payee means the system defaults to that expense account for all future payments to this particular payee. If you need to change the expense in the future, simply repeat the mapping process.
Note: Every time system (Sync to Accounting) processes a payment, it searches for an existing vendor name. If that vendor already exists in your QuickBooks Online account, it will record the payment to that vendor. If the vendor does not exist, the system will create a new vendor with the Payee’s name.
Tip: To avoid creating a new Vendor, you can map the Payee and Vendor directly in the main view as shown below.
Now, the payment is ready to be submitted into your QuickBooks Online account.
Remember, before any payment can be processed, it must have an expense account assigned to it.
Let’s review how a payment is recorded into QuickBooks Online.
- .Vendor – will be identified as Payee.
- Payment account – will use the default account set in Settings for processing all PayPal payment transactions.
- The transaction will be posted on the exact same date as it was reported in PayPal.
- Payment method – PayPal.
- Ref No. – is PayPal’s transaction ID.
- Categories – will use the account assigned (mapped) by the user.
- Description– PayPal’s transaction ID.
- Amount – Expense/payment amount.
- Total – the total payment transaction amount.
Payment processing is completed.