I have a question about how to account for the ‘Dispute Activity’ on my monthly PayPal statement in Quickbooks when trying to reconcile my PayPal account.
We have a large volume of transactions; around 1000 each month. We record all the sales and refunds in Quickbooks. Any disputes that we lose we record the refund in quickbooks. If a payment is received, held and then released back to us we don’t do anything other than record the initial payment being received.
At the end of the month when I try to reconcile my account I’m left with a difference which generally matches the ‘dispute activity’ amount from the monthly statement.
For example, I’m working on a monthly reconciliation at the moment. I’ve confirmed our beginning reconciled balance is correct. I’ve also confirmed all deposits and withdrawals have been recorded accurately. I’m left with a difference that matches the ‘dispute activity’ from the monthly statement.
How can I properly account for this ‘dispute activity’ amount while ensuring the bank reconciliation is done properly.
