Synder now supports the import and synchronization of PayPal disputes, giving you full visibility into the dispute lifecycle. When disputes occur, Synder automatically tracks the temporary holds, releases, and outcomes, ensuring your books accurately reflect the real status of your PayPal transactions.
- How PayPal disputes work in Synder
- Step 1: Initial payment processing
- Step 2: Dispute received (temporary hold)
- Step 3: Dispute resolved – seller wins
- Step 4: Dispute resolved – buyer wins
- FAQ
- How do PayPal disputes affect my accounting records?
- Does Synder automatically sync PayPal dispute transactions?
- How do I reconcile PayPal disputes in QuickBooks or Xero?
- Do I need to configure anything to track PayPal disputes in Synder?
- Can I customize how PayPal dispute transactions are categorized?
- Will past PayPal disputes be imported?
How PayPal disputes work in Synder
Step 1: Initial payment processing
When a customer makes a payment through PayPal, Synder processes it normally as:
- Sales receipts: The payment is synced as a sales receipt in your accounting software.
- PayPal fees: Any associated PayPal fees are recorded as separate expense transactions.
Important: The initial payment sync isn’t affected by any future disputes. Synder records the transaction exactly as it was received at the time of payment.
Step 2: Dispute received (temporary hold)
When a customer opens a dispute with PayPal, the following happens automatically:
- PayPal places a temporary hold on the disputed payment amount.
- The held amount will not be included in your regular PayPal payouts.
Synder will show a new transaction type called ‘Dispute’ that syncs the held amount as an expense with a negative value, reflecting the net amount you received rather than the gross payment. You can easily recognize and categorize these transactions using Smart Rules or other methods, since they will always include”Temporary Hold” in the description/notes.
Example: If you receive a $47.44 payment with a $2.15 PayPal fee, your net is $45.29. If the payment is disputed, you’ll see a -$45.29 expense labeled “Temporary Hold” (not the full $47.44, since PayPal only withholds the net).
Step 3: Dispute resolved – seller wins
If PayPal resolves the dispute in your favor:
- The previously held funds are released back to your PayPal balance.
- You regain access to the disputed amount within the next payout.
In this case, Synder syncs the returned funds as a deposit with a positive value. This offsets the earlier negative expense while keeping a clear record of the successful dispute resolution in your books.
Example: Continuing the previous case, you’ll see a +$45.29 deposit transaction that offsets the original -$45.29 hold.
Step 4: Dispute resolved – buyer wins
If the dispute is resolved in the buyer’s favor:
- The held funds are released to the buyer (refunded).
- You do not receive the disputed amount back.
In this scenario, no additional transactions will be posted in Synder. The previously recorded negative expense (temporary hold) stays in your accounting records. This represents the final financial impact of the lost dispute.
Example: The original -$45.29 expense remains as the final record, accurately showing the lost revenue.
FAQ
How do PayPal disputes affect my accounting records?
PayPal disputes are automatically tracked in your accounting software via temporary holds (represented as negative expenses) and dispute resolutions (recorded as deposits or permanent expenses). This setup provides full visibility of dispute impacts on your accounts.
Does Synder automatically sync PayPal dispute transactions?
Yes, Synder imports and syncs all PayPal dispute-related transactions, including holds, releases, and final outcomes automatically, without requiring any manual input.
How do I reconcile PayPal disputes in QuickBooks or Xero?
Synder creates matching transactions to facilitate reconciliation: negative expense entries for holds and positive deposit entries when funds are released. These reconcile directly against your PayPal clearing account to maintain clean records.
Do I need to configure anything to track PayPal disputes in Synder?
No configuration is necessary. PayPal dispute tracking is enabled automatically with your existing PayPal integration in Synder.
Can I customize how PayPal dispute transactions are categorized?
Yes, by using Synder’s Smart Rules feature, you can automatically assign dispute transaction categories, link them to specific accounts, or add custom descriptions based on your preferences.
Will past PayPal disputes be imported?
No. Only disputes that occur after enabling dispute tracking will be imported. Historical disputes prior to activation will not be brought into your accounting records.
For more information about PayPal integrations or other Synder features, visit our Help Center or reach out to Synder Team via online support chat or email.
