How to Put a PayPal Account in Quickbooks

Setup
1. Click the 'Lists' menu from the main QuickBooks screen. Select 'Customer and Vendor Profile' and then click 'Payment Types.' Click 'New Payment Method' and type 'PayPal' in the payment method field. Click 'OK.'
2. Select the 'Lists' menu and click 'Chart of Accounts.' Click 'Add New Account.' Choose 'Bank' from the drop down list labeled 'Type.' Enter 'PayPal' as the name. In the 'Opening Balance' field, enter the exact amount that is in the existing PayPal account. Click 'Okay.'
3. Select 'Lists' from the menu bar and again click 'Chart of Accounts.' Select 'Add New Account' but this time choose 'Expense' from the 'Type' drop down list. Use 'PayPal Fees' as the name. Click 'Okay.'
Payments
4. Select 'Receive Payments' from the main QuickBooks screen. In the 'Customer Payment' area, select 'PayPal' as the payment method. In the field marked 'Deposit To,' choose 'PayPal' from the drop down list.
5. Type a payment note in the 'Memo' field, if necessary. This note can describe the PayPal payment for future reference. In the 'Customer' field, enter the name of the customer sending the PayPal payment.
6. Enter the exact amount of the payment that was received via PayPal in the 'Amount' field. Click 'Okay.'
Fees
7. Select the 'Banking' menu from the main screen. Click 'Write Checks.' From the drop down list marked 'Bank Account,' select 'PayPal.'
8. Enter a payee name such as 'PayPal Fees' in the field labeled 'Pay To The Order Of.' Because this account is only used to track PayPal fees, the exact name does not matter. For the Payee enter something like 'PaySystems.' For the amount enter the transaction fee from PayPal, which is $5 in this case, and in the memo field type in something like 'ABC Fence - PayPal Fees.'
9. Type the exact amount of the PayPal fees charged for this payment in the 'Dollars' section. If needed, type a note in the 'Memo' field to record which job or transaction this fee is for. Click 'Okay.'