Receiving Invoice payment via merchant account in different currency

I posted a few weeks back about having problems receiving invoice payment via PayPal in different currency and having read other posts I think I am on the right track. I just wanted to make sure I am doing things properly before I start processing the other payments. Please could someone confirm what I have done below is correct?

My current account currency is GBP and the invoice in question was raised for 70.56 USD. The invoice was paid via PayPal and then transferred to business current account so there is an automatic bank feed income transaction for 40.72 GBP in my business current account. I went into the invoice, marked it as paid in full and added a manual payment for what I received from PayPal which was 40.72 GBP and posted it to my PayPal merchant account. I then proceeded to tag the automatic bank feed income transaction for 40.72 GBP in my business current account as a bank transfer from my PayPal merchant account. This seems to all look OK but when I got into my merchant account I have 3 transactions so not sure what to do here:

Invoice Payment from client > Money In £40.72 > Tagged
CURRENCY CONVERSION (CREDIT) > Money In £40.72 > Untagged
Transfer from PayPal to Business Current Account > Money Out £40.72 > Tagged

Do I just need to delete the CURRENCY CONVERSION (CREDIT) untagged transaction? In my actual PayPal account the money received from invoice payment was $67.00 as this is $70.56 minus $3.03 fees. It was only converted to GBP when the £40.72 was transferred to my business current account so not sure if I have to account for this somehow?

This is exactly what I was going to suggest, that would balance the account. I should add, I’m not an accountant… others may have different suggestions.