When I’ve paid for something via Paypal, as you’ll know i get two entries in the paypal account, like this:
What do I tag in the IN entry as ?
If i tag it (in paypal account) as a bank transfer from my business account, which was the obvious choice, it takes that amount from my balance and therefore leaves it incorrect.
In my current account I’ve tagged the out as a bank transfer to paypal, which as I understand is correct…?
Payments made from the PayPal balance would just be treated like payments made from any other bank account - you’d tag the money out on the PayPal account as a payment to a supplier. But I’m not sure whether you can tag payments from a bank statement when they involve a currency conversion, you may have to do it by logging a payment against the relevant purchase invoice(s), choosing PayPal as the source account and setting the GBP amount correctly.
As with the transfer example above, you’ll end up with two duplicate transactions on the PayPal account, one tagged and one not, and you can delete the untagged duplicate.