I have been manually tagging payments and income from PayPal merchant account and noticed a gap in the transactions. The PayPal account is GBP and I often send and receive payments in USD so have tag to GBP amount in PayPal and then tag another transaction between PayPal and my business account.
The other day I noticed a gap in the transactions when importing and when I looked closer in PayPal I realised I had a 92.22 USD invoice credited to PayPal but forgot to bank transfer GBP amount to my business account so PayPal was in credit. A number of subsequent supplier invoice payments for 19.00 USD were then deducted from this 92.22 USD credit until the credit was gone and then it started debit from my bank account as normal.
The problem I have is that because these transactions are in USD, when I import PayPal statement there is a gap and the 92.22 USD invoice credit and subsequent supplier payments from the PayPal balance do not import into quickfile. I’m assuming this is because the account PayPAl account currency is GBP and the transactions were never converted from USD to GBP as there was no bank transfer between PayPal and my business bank account.
What should I do in this situation? Should I just manually add the 92.22 USD invoice credit to PayPal and tag it as the recommend GBP amount based on the conversion rate and then do the same with the subsequent purchase invoices?