Account sales are sales where you issue an invoice for the sale of goods/services to the customer. Turning on the QuickBooks Online integration allows you to create invoices for account sales in QuickBooks Online easily.
- Account Sales must have a customer associated with them
- Once you've placed the sale On Account, you should not add more items to the sale, as the invoice total in QuickBooks Online will not be updated.
- If you apply a payment to an on-account sale in QuickBooks Online, the payment will not sync over to Retail POS.
How does it work?
Make the Sale
- On the Sell Screen, add the items, add the customer to the sale, click pay, and choose 'On Account'.
- The sale will be posted to QuickBooks Online, creating an Accounts Receivable invoice.
- This invoice will contain the following information:
- Customer Name
- Invoice line descriptions (product name)
- Quantity and Price for each invoice line
- Tax Rate for the transaction (based on your QuickBooks Online setup in Retail POS)
- Invoice Date
Set a due date for the sale
Due dates for On Account sales are based on the customer's terms in QuickBooks Online. You can update a customer's terms in QuickBooks Online to change the due date being applied to On Account sales.
Allocating a customer to the sale
QuickBooks Online will allocate a customer to the invoice based on a matching Company Name in Retail POS. If there is no Company Name entered in Retail POS, we will look up the customer in QuickBooks Online using the Retail POS First + Last Name. If there are still no matching customers, a new customer will be created in QuickBooks Online based on the customer details in Retail POS.
Take payment for the sale
You can take payment for the sale in either Retail POS or QuickBooks Online.
Receiving payment in QuickBooks Online:
When applying a payment to an On Account sale in QuickBooks Online, the payment will not sync over to Retail POS.
To account for this payment in Retail POS, you will need to apply it to the sale manually.
Applying payment to an On Account sale manually:
- Locate the customer's on account sale in sales history, and click Apply payment / refund.
- Select the method of payment from the Payment type drop-down.
- Enter the amount paid into the Amount field.
- Select the register the payment was taken at from the Register drop-down menu.
- Select the date the payment was taken from the Payment date drop-down.
- Select the time the payment was taken at from the Payment time drop-down menu.
- Click Save to finalise the payment.
Receiving payment in Retail POS:
- Locate the customer's on account sale in Sales History, and click Continue Sale.
- Click Pay and apply the payment amount.
- If the sale is not entirely paid, click On Account to put the remainder of the balance back on account.
- The payment will automatically post to QuickBooks Online. The following payments information will be sent to QuickBooks Online:
- Payment Date
- Payment method (based on your QuickBooks Online setup in Retail POS)
- Amount received
- Invoice payment is allocated to
What happens next?
When you close your register at the end of the day, any account sales started, and any payments made against account sales will be noted in your closing report. The Cost of Goods Sold (COGS) for on account sales will be included in your register closure COGS journal.
Please note, once an invoice has been posted to QuickBooks Online, the items in the QuickBooks Online invoice become fixed unless a payment is added to the invoice in Retail POS and synced. I.e., if you add or remove items from the account sale in Retail POS, these changes will not post to QuickBooks Online unless a payment has been added to the sale as well.
Reconcile the invoice and payment in QuickBooks Online
It is important to note that account sales payments are noted on end of day/register closure invoices posted to QuickBooks Online. This is to balance payments already assigned to their original invoice in QuickBooks Online.
If you received payment for the sale in Retail POS, you'll need to reconcile the payment when it's deposited into your bank account and appears in your QuickBooks Online payment feed.
Remember, this payment will likely be combined with the deposits for the daily sales/register close amounts for that day in your account (whether that is cash or card payments).
You may need to reconcile the deposit against multiple invoices - the invoice for your register closure, and the invoice for your account sale. Check out QuickBooks Online's help article on how to complete this process.