SimplePort Simplifies PayPal-QuickBooks Data Importing

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SimplePort Updates - August 3, 2011

We have modified the SimplePort code to manage two aggravating transactions types that cause the most grief to our users, PayPal Pending transactions and Uncleared eCheck transactions. QuickBooks correct handling of these transactions requires creating a new account in your QuickBooks Chart of Accounts and adding a new setting in the SimplePort BASIC group settings.

New SimplePort Features

PayPal Pending Transactions:
PayPal considers pending transactions (holds and removed) to be balance affecting. In QuickBooks, a transaction is either real or not (there is no such thing as a pending transaction). However, PayPal includes them in the transaction history file as either a credit or debit. In accounting, a credit = income and a debit = expense, but a pending transaction should be neither, as it should not impact the bottom line (your P & L ). To manage this counter-intuitive action from PayPal we require:

  • adding a new Other Asset account in your Chart of Accounts
  • name the account “PayPal Temporary Holds”
We will auto-assign all PayPal temporary hold transactions (placed and removed) to the PayPal Temporary Holds account. As the “temporary hold removed” transactions are imported they will offset the “temporary hold placed” transactions and the PayPal Temporary Holds account will balance out to zero. The temporary hold transactions will import to your PayPal bank account so it will remain in balance with the PayPal transaction history file. These transactions will also be set to auto-reconcile on import. As a temporary transaction is updated by PayPal to a completed status, the actual completed transaction will be imported and assigned to either an income or an expense account.

How to add the new account to your QuickBooks Chart of Accounts:
  1. From your Chart of Accounts click the Account button (lower left corner of the Chart of Accounts screen)
  2. Chose New from the selection list
  3. Click the Other Account Types radio button
  4. Chose Other Asset from the selection list
  5. Click the Continue button

  6. Enter PayPal Temporary Holds in the Account Name field (you may enter optional Descriptions, Account numbers and Tax-Line Mapping, but these are not required fields) do not enter an opening balance

    Click the Save & Close button

This completes the required Chart of Accounts modifications.

Updating your SimplePort BASIC Group Setting

  1. Go to the SimplePort site and log onto your SimplePort account
  2. Click the View/Change Settings link
  3. In the BASIC setting group enter PayPal Temporary Holds in the PayPal Temporary Hold Asset Account field

    Click the Exit/Save Settings button
  4. You will be prompted to save your settings file, save the file for backup purposes

The required SimplePort modification has been completed, you are ready to import PayPal files using your modified QuickBooks Chart of Accounts and SimplePort settings.

PayPal Uncleared eCheck Transactions:
In the past SimplePort imported uncleared eCheck transactions (if they were in the PayPal transaction file). This was not the correct thing to do as uncleared transactions do not have the PayPal fee included, but we were stumped since PayPal updates the original transaction when the eCheck does clear, instead of using the actual cleared transaction date and information (no other credit card or bank does it this way, just PayPal).

Prior to this new feature addition we requested waiting until the eCheck cleared before importing the transaction, this was inconvenient at the least and not what we wanted to do. Now, we have a deployed a method to manage uncleared eCheck transactions. Stick with us as this can get a little confusing...

  • Any uncleared eChecks included in the PayPal transaction download file will not be added to the SimplePort iif import file and will not be imported.
  • We will write the transaction to a SimplePort temporary file associated with your user id.
  • When your next PayPal transaction file is processed through SimplePort we will look for any “Update to…Cleared” status transactions and update the temporary stored transaction (from the previous import) with the updated information (including the PayPal Fee and the revised net amounts) and use the original transaction date (as PayPal does) for the transaction.

    Which means you may import a transaction dated the 31st of the previous month even though your date range for the transaction file does not include any transactions from the 31st, we are simply emulating what PayPal does.

If you have uncleared eCheck or pending transactions at the end of a month it is best to wait until sometime into the next month to balance the account in QuickBooks, this insures all pending and uncleared transactions have completed. It also means the PayPal Monthly Financial Summary reports (that many of you use for balancing purposes) will change depending on when the uncleared or pending transactions get completed by PayPal. This has been a continuing balancing issue with PayPal since the beginning of their history.

The new process for handling pending and uncleared transactions is very important when transactions span the end of one month and the beginning of the next month. Previously, in that situation, you may have ended up with two months being out-of-balance; this will no longer be the case.

Rolling Reserve Transfers: If you have rolling reserve transfer transactions, you already know SimplePort creates an active bank sub-account of your primary PayPal bank account in QuickBooks (where these transactions are assigned). However, we did not auto-reconcile rolling-reserve transfer transactions. As the rolling reserve transactions are between the sub-account and the primary account there is no reason not to auto-reconcile these transfers, which we now do. This should make balancing much simpler.

The following non-balancing affecting transactions will no longer be imported:

  • Invoice sent
  • Invoice received
  • Request sent
  • ATM Withdrawals Fees (already included in the original ATM withdrawal transaction)

These transactions are not balance impacting and should not be imported.

If you have questions concerning the enhanced feature functionality, please send an email to SimplePort Sales and Service, we will respond as quickly as possible.

To edit your SimplePort BASIC Group setting for PayPal Temporary Holds click the View/Change Settings link on the process steps page.