How to Set Up Your PayPal Direct Feed

(XERO)
1. In the Accounting menu, select Bank accounts.
2. Click Add Bank Account.
3. Start typing PayPal, then select PayPal from the list.
4. Click Login & Connect Accounts.
5. Enter your PayPal Primary Email Address and Password, then click Sign On.
6. Select the accounts you'd like to connect with Xero, then click Continue.
7. Select the checkbox to confirm that you've read the Terms and Conditions, then
click Connect My Accounts.
8. Next to each currency, select the checkbox to import the feeds into Xero. If you have
an existing account, you’ll have the option to select it from the dropdown box.
9. For each bank account, select the start date after the last transaction in Xero for
existing accounts, or for new accounts, select the date that you'd like transactions
imported from. If you don't update this, transactions from the last 180 days will be
imported into Xero.
10. Click Connect.

Once connected, your bank transactions will immediately import into Xero. If you'd like to
import earlier transactions after the feed has started, you'll need to manually import them.

You can connect extra PayPal currencies at any time. Add a new bank account in Xero and
select the new currency you'd like to connect. If you have an existing account, you’ll have the
option to select that account.
 Update an existing PayPal feed
If you have an older PayPal feed, you can upgrade to a new feed. If you see an Update
button on your PayPal account in Xero, this is an option for you. You only need to do
this once.

1. In the Accounting menu, select Bank accounts.

2. Find the PayPal account that you want to update.
3. Click Update.

How to Reconcile Gateway Transactions

If there’s a gateway payment, three bank statement lines will be imported into Xero for
one transaction. They’re a Spent and Received statement line in the PayPal account and
a Spent statement line in the bank/credit card account.

For example:

• You made a purchase of $100.

• The related bank or credit card account will import a transaction line of -$100.
• The PayPal feed will import a transaction line of $100 (money received from
bank or credit card).
• The PayPal feed will import a transaction line of -$100 (money spent).

To reconcile these transactions:

1. Make sure you've set up your bank or credit card as an account in Xero.
2. Create a transfer from your bank account or credit card account to PayPal.
3. Reconcile the matching statement line in your PayPal account against this bank
transfer.

This will leave you with a remaining statement line in your PayPal account which you
can reconcile against the actual expense. If the transaction is not already in Xero, you
can create a spend money.
PayPal Multicurrency Bank Reconciliation
1. Export transaction history .csv for the period you want

2. Open in Excel and sort rows by currency.

3. Remove all hidden transactions if you want (like temporary hold)

WARNING: Make sure for these types of transactions, there is an equal amount
going in and out.

4. Create a separate .csv file for the transactions in each currency.

Then in Xero/QuickBooks Online, do the following:

1. Import each .csv file into the corresponding bank account set up for that currency.

2. When reconciling currency conversions, reconcile them as transfers to the bank

account for that currency.

3. In the corresponding bank account, when finding the match, adjust the currency
amount to match. And Xero's/Quickbook’s currency conversion should confirm the
amount for the transaction date.

[Video Tutorial QBO PayPal Multicurrency Bank Recs Posted in The FB Group]