How To: Reconcile Paypal Payments via Import
Table Of Contents
Creating a dedicated PayPal bank account in Khaos Control allows you to reconcile PayPal transactions quickly and accurately using a PayPal transaction export.
By importing a PayPal transaction file into Khaos Control, the system can automatically match transactions against banked orders, significantly reducing the time required to complete your bank reconciliation.
Performing the PayPal Reconciliation
Prepare the PayPal Export
- Export your transaction history from PayPal.
- Open the exported file in Excel.
- Save the file as a CSV (.csv) file.The file is now ready to import into Khaos Control.
Import and Match Transactions
- Open the [ Accounts | Bank Accounts ] screen.
- Select the PayPal bank account from the Bank Account drop-down list.
- Click Go.
- Press Alt + E or click Edit to enter edit mode.
- Open the Other Actions menu by:
- Pressing F9, or
- Clicking the drop-down arrow next to the green Add button.
- Select:Import → Match PayPal CSV Payments...
- Browse to and select the PayPal CSV file.
- The Match PayPal CSV Payments dialog will open.
- Khaos Control will process each transaction and attempt to match it using:
- PayPal Invoice Number
- Transaction Date
- Transaction Amount
- Where a match is found, the Recon checkbox will be ticked automatically.
- Press Ctrl + S or click Save.
- Complete the bank reconciliation as normal.For further guidance, see How To: Perform a Bank Account Reconciliation.
How Transaction Matching Works
Khaos Control matches the PayPal Invoice Number in the CSV file against the payment Authcode stored against the sales order.
For PayPal imports:
- The leading c at the start of the invoice number is ignored.
- The trailing .x suffix (where x is a number) is ignored.
This allows the imported PayPal transaction to be matched correctly to the corresponding transaction held in Khaos Control.
If:
- The invoice/reference matches,
- The transaction date matches, and
- The transaction value matches,
Khaos Control will automatically mark the transaction as reconciled.
After Reconciliation
Once reconciliation is complete, you may wish to account for any fees retained by PayPal.
Recording PayPal Fees
There are two common approaches.
Option 1: Create a Supplier Invoice
If you require an invoice for PayPal fees:
- Create an invoice against your PayPal supplier account.
- Use the PayPal Fees nominal account.
- Pay the supplier from the PayPal bank account.
This reduces the balance held in the PayPal account.
Option 2: Post a Journal
If no supplier invoice is required:
- Post a journal between:
- The PayPal Fees nominal account, and
- The PayPal bank account.
Transfer the Settlement Value
After accounting for fees:
- Review the remaining balance in the PayPal bank account.
- This balance should equal the amount transferred by PayPal into your main bank account.
- Journal the value from the PayPal bank account to your current account.
- Once completed, the PayPal bank account should be cleared for that reconciliation period.
Troubleshooting
After the import completes, Khaos Control will display a summary of any transactions that could not be matched.
Common reasons include:
Order Not Found
The invoice number in the PayPal CSV file does not match the corresponding payment reference stored in Khaos Control.
Already Reconciled or Date Mismatch
The transaction:
- Has already been reconciled, or
- Has a transaction date that does not match the corresponding entry in Khaos Control.
Amount Mismatch
The transaction value in the PayPal CSV file does not match the value recorded in Khaos Control.
Tips
- Always save PayPal exports in CSV format before importing.
- Reconcile transactions regularly to simplify fee accounting and settlement transfers.
- Investigate skipped transactions before completing the reconciliation.
- Ensure PayPal invoice references are being passed correctly from your website or channel integrations.