PayPal Currency Conversions for users in the United States

The PayPal transactions associated with currency conversion on international sales or purchases can be confusing.  GoDaddy Bookkeeping simplifies the categorization of these transactions by categorizing all entries not in US dollars as "Transfers" while categorizing the sale entries as "Sale" and the expense entries as "Uncategorized". Please note the examples below: 

The best way to view your international transactions is to click on your PayPal account in the "Money I Have" box on the left side of your account (pictured below in the red rectangle).

 

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Income example:

Here is an example of a PayPal currency conversion that is an income to your business. In this transaction a customer has paid for an item through PayPal in Euros and PayPal has converted the amount to dollars. 

 

You can see that the entries where the amount is not in dollars are automatically categorized as a "Transfer" (so they don't affect your balances). Since the payee name is associated with the Euro entry many users move this name over to the "Sales" entry. You can find the payee name on the "Transfer In" (red circle) to use on the "Payee" field on the "Sales" entry (pink rectangle).

 

Expense example:

Here is an example of a PayPal currency conversion that is an expense to your business. In this transaction you purchased something from a merchant who is paid in another currency, so PayPal has converted your dollars into Euros.

 

 

You can see that the entries not in dollars are automatically categorized as a "Transfer" (so they don't effect your balances). Since the Payee name is associated with the Euro transaction many users move this name over to the "Uncategorized" entry. You can find the payee name on the "Transfer Out" (red circle) to use on the "Payee" field on the "Uncategorized" entry (pink rectangle).

 

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