Tagging Paypal purchases

Hi, I’ve recently set up a Paypal automated feed but I have no clue how to now tag these. How do I link the payments showing on the bank statement to the matching amount in the paypal account?
Thank you for you time.

Hi Baphs,

A bit more information would be great but for a starting point you could read the article below:

Did you setup a current bank account? If not you should do so. When paypal transfers your money from your paypal account to your current bank account you write this as an new transaction (money in) in your current bank account and tag it as an bank transfer from your paypal account you already have created. If you have auto feed for your current account as well you don’t need to write a new transaction the auto feed will create this transaction over night for you and on the next day you just tag it as an bank transfer from your paypal account.
If you get paid over paypal you create an invoice in quickfile and tag it to the transaction in your paypal account (in quickfile). You can also tag/create the invoice from the tagging button inside your paypal account (in quickfile). For the fee paypal charge you, which is also uploaded to your paypal statement (in quickfile), you create/tag an purchase invoice with paypal as the recipient.
As a tip: In your paypal account settings in quickfile you can find an option to ignore an upload of your payout transaction (from paypal to your current account) which you may tick. Because of the way quickfile works it is very likely that you will end up with 2 entries which is a bit confusing at the beginning.
I hope it helps a bit.
You can find quite a lot of information in the quickfile knowledge base

Hi rhc,
Thanks again for your time.
I’ve been using quickfile for sometime but I’m new to the paypal side of things.
My current account is set up and all payments made to paypal are in there and waiting to be tagged.
Now also the payments made are also showing in the merchant account paypal so how do I link these. I thought one of the reasons to set up an automated Paypal feed was so I didn’t have to enter a separate purchase entry for each and every amount manually.
Do I transfer amounts between accounts as payment to supplier doesn’t work as no purchase entry has been created.
Does this make more sense?

The “payment to a supplier” is the one leaving your PayPal merchant account on the date you made the PayPal payment. When the money leaves your current account a few days later that is just a transfer to the merchant account, not another payment to the supplier (you’re effectively reimbursing PayPal for a payment they made on your behalf).

Thanks Ian, that makes sense.
One final thing, so I can be 100% sure I’m doing in right.
So I still need to create a purchase for each individual purchase made through paypal?
What if I don’t have an invoice? Sometimes when things are ordered from Paypal you just get an order confirmation or something similar. Are these sufficient? I was hoping my paypal record would act as invoice and save me some time (clearly living in a dream world :slight_smile:
Thanks again

Hi Baphs,
If you are a business you will need a invoice. What ever you buy and pay with paypal the supplier should give/send you an invoice. In your quickfile paypal account you have to tag and then create an invoice for each purchases. But to make things quicker and easier you can apply tagging rules for automated tagging of payments to an invoice, which will also create an invoice for you. You only have to create an supplier before and the tagging rule. On the created invoice you can attache a photocopy of the physical invoice from your supplier but it is an optional option. If you don’t attache the invoice then you have to keep the physical invoice somewhere save just in case the taxman is knocking on your door. I hope this helps

If you are VAT registered and want to reclaim the VAT then you must have a valid VAT invoice or a receipt that complies with the requirements of a “simplified” or “modified” VAT invoice.

If you’re not reclaiming VAT then the requirements are less strict but you still need some kind of documentation from the supplier stating what it is you’ve bought, if the PayPal confirmation is sufficiently detailed then that might do but if it just says you’ve sent £X to company Y but not what it was for then you’ll need the supplier’s invoice/receipt/order confirmation/etc as well. This documentation doesn’t necessarily have to be uploaded into QuickFile but that’s generally the easiest way to be sure you can find it easily if the tax man ever asks.

This topic was automatically closed after 7 days. New replies are no longer allowed.