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Paypal Loans and how to treat them & the Interest

The best way to process on Xero Accounts

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I am treating the paypal account on Xero as a bank account to process all transactions each month. Does  anyone have any tips for treating the loans, interest and lump sums repaid to paypal to keep the balances matching.

 

 

 

 

 

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RLI
By lionofludesch
22nd Oct 2019 18:23

Getting the documentation is a challenge.

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Replying to lionofludesch:
By coolmanwithbeard
24th Oct 2019 12:40

The best report to use as a statement is balance affecting activity report for a given period. It has a running balance although it doesn't always report correctly. If you don't link your pp to qb you can get this as a csv and do a manual import. Actually two imports one for the gross transactions and one for the pp fees. If you use a lot of foreign currency transactions you can set up a separate account for each currency. You can then sort the above report into individual currencies and use separate reports for each currency and transfers between them. You may need tk adjust exchange rates. Simply do the msths on that in the exchange rate box gpb/euro for example.

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By reconynge
24th Oct 2019 14:44

Provided you have the PayPal feed going into Xero, this is very straightforward. PayPal loans have two features - the loan advanced with a fixed fee (instead of interest) and the repayments always go to PayPal Europe. So,

Step 1 - setup a PayPal loan account in which you record the money received from PayPal. Also, do a journal for the fixed fee, attaching the contract. Eg CR PayPal loan £2000, DR bank fees £2000. [Or, alternatively, put them in the receive money transaction

Step 2 - in the PayPal bank account, have two rules so payments to and from PayPal Europe come out of/go to the loan account

Ok??

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