Opening balance of my Paypal Bank account is different from its previous closing balance balance

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Opening balance of my Paypal Bank account is different from its previous closing balance balance

Hi,

 

I started using Paypal since Apr 2020, and I have entered all the transactions of my paypal bank account of the last financial year. I check the general ledger (from 1/4/2020 to 16/9/2020) and the total balance is $0, which is good, as I have transferred all money back to the saving account.

 

However, when I changed the general ledger starting date (from 1/7/2020 to 16/9/2020), it shows a total balance of $5. It is shown in pic 1.

So I tried to change the starting date again (from 30/6/2020 to 16/9/2020), the total balance is $0 again as shown in pic 2.

 

I wonder why is this happen. I thought the opening balance should always be the same as the closing balance.

Please advise if it is possible to change the total balance back to $0 before I start entering for this financial year. Thank you.

 

 

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Re: Opening balance of my Paypal Bank account is different from its previous closing balance balance

Hello @mabelwmp

 

I would be looking to see where that $5.00 discrepancy comes from, whether there is something unallocated or entered incorrectly that is being triggered to show up by using a different date range, or if there is a quirk in your Essentials that we could narrow down and resolve. Please go to Banking >> Bank Reconciliation >> Chose your Paypal account and select 16/9/2020 as the date; does anything show as unallocated? Then, please give the following a try:

 

  1. Make sure all transactions for the relevant account have been allocated or matched. This means there will be no transactions on the Banking page appearing as Allocate Me.
  2. Go to the Reports >> Banking Transactions report.
  3. Leave the Contact field as All, and select the required bank account from the Account drop down list.
  4. Specify a wide date range like 01/01/2000 to 31/12/2020 and leave all other fields blank.
  5. Click Generate report
  6. Print the generated report and compare the transactions on the report to the transactions in your actual PayPal account to see if there is anything appearing on one but not the other.
  7. You can then resolve the discrepancy by either adding or deleting the offending transaction(s) in MYOB Essentials Accounting.

Let me know if the above sheds light on anything unusual that can be easily resolved, or if nothing is showing up as out of the ordinary and we can investigate from there.

Kind regards,
Emily

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Re: Opening balance of my Paypal Bank account is different from its previous closing balance balance

Hi @Emily_B,

 

I have not reconciled my Paypal Bank Account as the paypal statement is different from a normal bank statement. It does not give you a balance by the end of each month, and its report is really a mess.

It took me really long time to identify all transactions and transfer the amounts less paypal fee back to the saving account to avoid reconciIe the paypal bank account itself.  

Do I have to reconcile the paypal account? If yes, please show me how to do it.

 

One thing I can be assured is that when I go to Banking -> Bank Transactions,

I selected All Transactions & All Bank Accounts, no "Allocate Me" is found, everything from the beginning to 30/6/2020 is matched. 

Also, I went to the Reports >> Banking Transactions report, the total amount of Deposit and Withdrawal from the beginning to 21/9/2020 are balanced. 

 

I do have a memory about a $5.00 discount given by Paypal when an item was bought. I allocated that $5 to "Paypal Bank" on the invoice as show in the picture. However, the item was returned and the total amount was refunded.

Do you reckon this is the reason? Did I put it in a wrong way so that the balance shows differently on different starting date? Please take a look and advise by return. Thank you.

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Re: Opening balance of my Paypal Bank account is different from its previous closing balance balance

Hello @mabelwmp 

 

Unfortunately, I'm not an expert on PayPal so can't quite discern where something may have gone wrong from a PayPal point of view. However based on this statement: I selected All Transactions All Bank Accounts, no "Allocate Me" is found, everything from the beginning to 30/6/2020 is matched, I am wondering if that $5.00 would show up as unmatched if you ran the dates from 1/7/2020 to today? As it is possible that something changed after 30/6 that unmatched that $5.00 and has left it lingering to create the discrepancy described in your first post.

 

Specifically, my thinking is based on I do have a memory about a $5.00 discount given by Paypal when an item was bought. I allocated that $5 to "Paypal Bank" on the invoice as show in the picture. However, the item was returned and the total amount was refunded. 

 

So, you made a purchase for an item that was $683.98. Paypal provided you with a $5.00 voucher, making the total you owed $678.98 - this is shown in the 13/5 records. You then returned the item and received a full $683.98 back from eBay, yet that $5.00 as a separate entry had already been allocated. So perhaps from the software's point of view, you received that $5.00 twice - once when you first got it and allocated it to 'PayPal Bank,' and then again when eBay refunded the full $683.98 (because you originally, technically, only paid $678.98.) Does this make sense?

 

This could be why, post-June, your balance is reflecting an additional $5.00. From Banking >> Bank Reconciliation >> Chose your Paypal account, does that $5.00 show as unmatched or unallocated anywhere post-June? 

Kind regards,
Emily

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Re: Opening balance of my Paypal Bank account is different from its previous closing balance balance

Hi @Emily_B ,

 

I actually have not started entering anything new for the new financial year (since 1/7/2020), all entries I have in the Paypal Bank Account are the follow up of the previous year. It was lucky that I checked before entering new orders. From Banking >> Bank Reconciliation >> Paypal Bank, that $5 could not be seen when I set the reconcilation date as today. 

 

"So perhaps from the software's point of view, you received that $5.00 twice - once when you first got it and allocated it to 'PayPal Bank,' and then again when eBay refunded the full $683.98 (because you originally, technically, only paid $678.98.) Does this make sense?"

 

Yes, I think this could be the case, but as all those transactions are done before 30/6/2020, and the total amount is balanced, I do not see why the different comes when I choose the starting date from 1/7/2020. Could it be the way I allocate the voucher on the invoice and supplier return? I tried to allocate that voucher to the paypal bank account in its return transaction, but it looks really weird, especially in the Supplier Return page.

 

The actural amount that I paid was $678.98, and the amount I got back is $683.98 (including the $5 voucher), I do not really sure how to enter it on the invoice and Supplier Return. Could you tell me the normal procedure of entering an voucher in the case like mine? Thank you.

 

 

 

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Re: Opening balance of my Paypal Bank account is different from its previous closing balance balance

Hello @mabelwmp 

 

Just confirming this is a $5.00 voucher from PayPal to you, and you were making a purchase on eBay and NOT a $5.00 voucher given to a customer who was making a purchase from you? Just want to clarify before proceeding in case I have misunderstood the scenario. Regardless, from what I can see in the screenshots and piece together from the information given, the bottom line seems to be that Essentials believes there is $5.00 floating around post 1/7/2020 that needs to be matched or allocated to a transaction in the software, or that is not reconciled via other transactions. To me, the following is indicated:

 

According to the BANKING TRANSACTIONS screenshot in the first post, it was $683.98 paid to eBay ($678.98 + $5.00 'invoice') on 13/5 and also $683.98 returned on 24/06. So prior to 1/7, everything reconciles and the balance zeros out. However, The invoice (15/05 dated?) in your most recent post indicates:

Original purchase: $719.98

Less the discount: -$36.00

Less the voucher: -$5.00

Total paid to eBay: $678.98... NOT $683.98 as indicated by BANKING TRANSACTIONS image.

 

And the Supplier Return image dated 6/05 (mistakenly dated? As this would date the return as prior to the actual purchase) indicates:

Return: $678.98

Less the voucher: -$5.00

Total on that return: $673.98... NOT $683.98 as indicated by BANKING TRANSACTIONS image. Finally, there is then a General Journal entry on 29/07 indicating $678.98 as the return amount, NOT  $673.98 or $683.98.

 

With the above, I am having difficulty following everything completely and understanding the trail of the mystery $5.00. Thank you for the screenshots thus far, but to truly try and understand what has happened I may need to see more. If possible could you please send images of your General Ledger from 4/1/2020 - 30/6/2020 and then from 4/1/2020 - 31/7/2020. It seems the discrepancy happens in July when a different figure for that return is added. Also, a full image of the invoices that were used in Essentials for the initial purchase and the return. You can send these to me via Private Message by clicking on this link.

 

Finally, to your query, there is not a set way of handling vouchers or gift cards that are given to you in Essentials but generally I have seen it done as the voucher/gift card input as a Receive Money transaction that can then be allocated to the account of choice. As a voucher is not a "discount" per se on a specific item, but rather a "gift" of money to be used per your discretion on any item. Theoretically, had it been first allocated to the account used to make the purchase (Purchases 1?) rather than added as a negative line item, you would have paid $683.98 with $5.00 of that being the voucher already sitting in the applicable account. Instead, it seems the $5.00 was recorded as an additional discount (like the $36.00), and so only $678.98 left the account (according to Essentials).

 

To truly find out where the $5.00 belongs or if it is there in error I would recommend following the instructions outlined in this Help Article on reconciling accounts. You could also try recording a Receive Money transaction and allocating it that way to see if it clears away. In the meantime, I will look for the additional images and will go from there. Ultimately though, this may be something better suited for an accounting advisor or somebody who would be able to see your full Essentials account face-to-face and investigate more thoroughly. 

Kind regards,
Emily

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