How To Handle "Reserve Hold" Paypal Entries

Hey,

When importing my paypal feed, apart from the Total Payment and the Fee , there’s also entries for the “Rolling Reserve” which comes up as “Reserve Hold”. Essentially these are 5% amounts that are withheld at random from certain transactions and “Cleared” after a certain period (usually 12 days).

As they appear as separate transactions (instead of as sub-transactions within the transaction the money was withheld from, like the Fee’s are), I initially thought I could just create a bank rule, and assign them to my Paypal eCommerce income account but I soon realized it would create an issue of duplication.

These are my bank rules:

This is a test import:

What would be the correct way of handling these transactions?

You would create a Balance Sheet - Asset account called “PayPal Reserve Clearing” and post both the “withheld” and the “returned” to there so they cancel out.

1 Like