# Proper way to record PayPal payment from bank account **URL:** \ **Category:** Uncategorized\ **Created:** [May 25, 2016, 5:07pm UTC](https://forum.manager.io/t/proper-way-to-record-paypal-payment-from-bank-account/5864 "2016-05-25T17:07:12Z")\ **Posts on this page:** 4\ **Page:** 1
**Author:** ![devan](https://avatars.discourse-cdn.com/v4/letter/d/13edae/32.png) [@devan](https://forum.manager.io/u/devan)\ **Post date:** [May 25, 2016, 5:07pm UTC](https://forum.manager.io/t/proper-way-to-record-paypal-payment-from-bank-account/5864/1 "2016-05-25T17:07:12Z")
I pay much of my supply expenses using PayPal while most sales receipts are automatically deposited into a bank account. Each are setup in Manager as Bank Accounts. When recording my monthly payment to PayPal, I have been doing a manual “Transfer money” from the bank account to PayPal and it has worked well for the past year. This month, I tried to automate the process and include that payment from the bank along with the other transactions listed in the PayPal import (Import Bank Statement). However, the bank’s eCheck payment to PayPal came in as an “Uncategorized transaction” because it didn’t know which account to allocate it to. I was wondering if there was a ‘proper’ way to do this before going back to the manual transfer. Which Account should be selected in a case like this? When doing a “Transfer money”, both PayPal and the bank accounts are listed, but not here (appears like a “Receive money” transaction). My Chart of Accounts has been working great so far with everything balancing to the penny, so I was hesitant to experiment and add something that could throw everything off. Thanks for any advice. ---
**Author:** ![lubos](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/lubos/32/62798_2.png) [@lubos](https://forum.manager.io/u/lubos)\ **Post date:** [May 25, 2016, 10:33pm UTC](https://forum.manager.io/t/proper-way-to-record-paypal-payment-from-bank-account/5864/2 "2016-05-25T22:33:03Z")
For now, if you are importing your bank statements, the best way is to have an account called `Inter-account transfers` under your `Equity` section in your chart of accounts. Then allocate all uncategorized transactions which represent transfers into this account. The idea is that the balance of this account should always come to zero as what comes in will always come out. ---
**Author:** ![Brucanna](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/brucanna/32/1960_2.png) [@Brucanna](https://forum.manager.io/u/Brucanna)\ **Post date:** [May 25, 2016, 10:36pm UTC](https://forum.manager.io/t/proper-way-to-record-paypal-payment-from-bank-account/5864/3 "2016-05-25T22:36:44Z")
When you say you tried to automate the process were you trying to replace your manual transfer money with a bank rule? Bank Transfer is a short hand transaction but when you use Bank Rules you need to do the long hand transaction - Read here for previous discussion - in your case use Bank/PayPal instead of Bank/Cash > [@Transferring money between cash account and bank account](https://forum.manager.io/t/transferring-money-between-cash-account-and-bank-account/5163): > > I have created a cash account in Petty Cash under “Cash Accounts”. Now when i am trying to allocate a bank “cash withdrawal” entry to account to Petty Cash…it does not show up in the account drop down list. is there any problem with the bank entry…? I have imported the bank a/c using a .qif file…and here is a sample cash withdrawal entry from the .qif file. D10/09/12 T-8,000.00 N905316 MJOJPR :- SELF LCNP ^ if i m not clear…here is the situation. The bank a/c has Rs.10,000/- and i prese… ---
**Author:** ![Ealfardan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/ealfardan/32/63166_2.png) [@Ealfardan](https://forum.manager.io/u/Ealfardan)\ **Post date:** [January 18, 2023, 3:33pm UTC](https://forum.manager.io/t/proper-way-to-record-paypal-payment-from-bank-account/5864/4 "2023-01-18T15:33:07Z")