Missing spend money transaction for a PayPal fee

Here's what to do if you need to reconcile a PayPal transaction fee but Xero hasn't created a spend money transaction. Manually reconcile the transaction, then update your Xero and PayPal settings.

If you signed up for a new PayPal account from an approved invoice, you'll need to create a spend money transaction for all fees incurred before you activated your PayPal account.

Reconcile the PayPal fee

  1. Go to Accounts, then click Bank Accounts.
  2. Find the PayPal bank account you want to reconcile. Click Reconcile [number] items.
  3. Find the statement line for the PayPal fee, then create a spend money transaction and reconcile it.

Update your Xero and PayPal settings

Set up Xero to manage fees automatically

A spend money transaction is created if you selected the automate fees option when setting up PayPal as a payment service, or added PayPal from an approved invoice.

Set up PayPal as a payment service in Xero

If you use multi-currency, update your PayPal account settings

Your PayPal account settings determine how Xero records a customer's payment. If you manually approve or decline payments, Xero will record the payment as pending and won't create a spend money transaction.

To ensure that Xero always creates a spend money transaction, log in to PayPal and update your account settings:

  • Choose all the currencies that you'll accept payment in.
  • Select the checkbox to accept payments in other currencies automatically.

You might also be interested in