USA Bookkeeping: Always code Paypal transactions as transfers or no?


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Small biz general accounting question: In online accounting systems like Quickbooks and Waveapps, should Paypal transactions always be coded as transfers, or what?

Most of the time i use Paypal for purchases, which draft from my bank account, but on occasion there's a refund from a return, or i receive a payment, or there's a paypal credit, etc., so there may be a paypal balance for a period of time, and a new transaction will draw on that before or in addition to drafting the bank.

So should Paypal transactions always be recorded as transfers? Or only when the transaction involves a draft on the bank?
 
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Joined
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When I booked Paypal transactions, I would download the activity report from Paypal and break down the money received, fees charged, etc. It would be booked as either Income (cash in), Sales Returns (cash out), or Expenses (Paypal fees). I'm studying for the CPA exam currently (using UWorld Roger CPA Review), and I am sure that they would concur.
 

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