gnucash-user Digest, Vol 143, Issue 68

[Richard Dawson]

On Tuesday, February 24, 2015 07:20:06 AM gnucash-user-request at gnucash.org 
wrote:
> > What's the best way to set up an GNUcash for Paypal?  Should I make a
> > Bank account or a Cash account?
> >
> > 
> >
> > Andy
> 
> For many years I didn't have a Paypal account within gnucash, but this
> year I have decided to do so, after running into difficulties
> reconciling refunds which were cross-currency.
> Now I have a Paypal account in gnucash, probably a bank account type.
> I enter the paypal transaction and then on the line below the payment
> to paypal from the other account. Twice the work, but reconciling is
> easier.


I treat paypal like a credit card, as a liability.  Paypal puts out the money, 
and then I have to reimburse paypal.  If there is a positive balance, it is 
something that I owe.

One still has to make two entries, one from paypal to the supplier and one 
from the source of funding to paypal.  

So, it doesn't seem to make much difference which way you set it up, as a bank 
account or a liability, one has to make two entries per purchase.  The only 
real difference is whether an unreimbursed paypal expenditure shows as a 
positive number or a negative number.