Automated PayPal Revenue & Fee Reconciliation with QuickBooks (n8n)

1. **Configure Credentials:** In n8n, go to 'Credentials' and create a 'PayPal Rest API' and 'QuickBooks Online OAuth2' connection. For QuickBooks, ensure you are using a sandbox environment first for testing. 2. **Setup PayPal Webhook:** Add a 'Webhook' node in n8n. Set the HTTP Method to 'POST' and copy the Production/Test URL. Paste this into your PayPal Developer Dashboard under 'Webhooks' for the 'PAYMENT.SALE.COMPLETED' event. 3. **Identify Parent Record:** Add a 'QuickBooks Online' node. Set the Action to 'Get Many' for the Customer resource. Use an expression like `{{ $json.body.payer.payer_info.email }}` in the filter to see if the customer already exists. 4. **Branching Logic:** Add an 'If' node to check if the QuickBooks Search returned a Result. If empty, add another QuickBooks node to 'Create' a customer using the PayPal name and email data. 5. **Data Transformation (The Set Node):** Add a 'Set' node to map values and perform math. Create variables for `GrossAmount`, `FeeAmount` (usually a negative value or separate expense), and `NetAmount`. Use expressions like `{{ $json.body.amount.total }}`. 6. **Map Line Items:** Use the 'QuickBooks Online' node with the 'Create Sales Receipt' action. Map the `GrossAmount` to the first line item and, crucially, map the `FeeAmount` to a second line item linked to a 'Merchant Fees' service item in QuickBooks (use a negative value to reduce the total). 7. **Handle Currency:** In the Sales Receipt node, ensure the `CurrencyRef` matches the PayPal `currency_code` using an expression. 8. **Deposit Account:** Set the `DepositToAccountRef` to your 'PayPal Clearing' account ID in QuickBooks to mimic the real-world flow of funds. 9. **Implement Error Handling:** Create a separate 'Error Trigger' workflow. In your main workflow's 'Settings', select 'On Error -> Simple' and point it to the error workflow to receive Slack/Email alerts if a sync fails. 10. **Activation:** Switch the Webhook node from 'Test' to 'Production' and flip the workflow toggle to 'Active'.

| PayPal Field | QuickBooks Field | n8n Expression / Transformation | | :--- | :--- | :--- | | `payer.payer_info.email` | `Customer.PrimaryEmailAddr` | `{{ $json.body.payer.payer_info.email }}` | | `amount.total` | `Line.1.Amount` (Gross) | `{{ parseFloat($json.body.amount.total) }}` | | `transaction_fee.value` | `Line.2.Amount` (Fees) | `{{ -parseFloat($json.body.transaction_fee.value) }}` | | `id` | `PrivateNote` | `PayPal Trans ID: {{ $json.body.id }}` | | `create_time` | `TxnDate` | `{{ $json.body.create_time.split('T')[0] }}` | | Constant | `DepositToAccountRef` | Hardcode your QuickBooks 'PayPal Clearing' Account ID |

• **Rate Limiting:** QuickBooks Online API has strict rate limits. If processing high volume, use the n8n 'Wait' node or 'Split in Batches' node to prevent 429 errors. • **JSON Nesting:** PayPal webhooks can be deeply nested. Always use the 'Schema' view in the n8n expression editor to ensure you are targeting the correct property (e.g., `body.resource.amount`). • **Duplicate IDs:** n8n will trigger on every webhook. Ensure you map the PayPal Transaction ID to the QuickBooks `DocNumber` or a Custom Field to prevent duplicate revenue entry. • **Sandbox vs Production:** PayPal Webhook IDs change between environments. You must update your Webhook URL in PayPal when moving from n8n 'Test' to 'Active' status.

- [ ] Execute n8n workflow once manually using PayPal 'Webhook Simulator'. - [ ] Confirm Customer record in QuickBooks shows the correct email and name. - [ ] Verify Sales Receipt total matches the PayPal 'Gross' amount. - [ ] Check that the 'Merchant Fee' line item is correctly subtracted in QuickBooks. - [ ] Ensure the 'PayPal Clearing' account balance increases by the 'Net' amount. - [ ] Run a test with a failed payment to ensure the n8n workflow handles/filters it without creating a record.