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Sending on account sales to QuickBooks Online

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On account sales are used to track product purchases that the customer intends to pay at a later date. By placing a purchase on account, you will create an invoice for that sale that the customer will need to pay. Turning on the QuickBooks Online integration allows you to create invoices for account sales in QuickBooks Online easily.

Making the sale

  1. On the sell screen add the items to be sold.
  2. Attach a customer to the sale. On account sales must have a customer associated with them.
  3. 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.

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. For example, if you add or remove items from the account sale in Retail POS, these changes will not post to QuickBooks Online unless you add a payment to the sale as well.

Setting 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, the customer first and last name will be allocated. If there are still no matching customers, a new customer will be created in QuickBooks Online based on the customer details in Retail POS. 

Taking 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.

  1. Navigate to Sales history.
  2. Locate the customer's on account sale and click Apply payment / refund.
  3. Select the method of payment from the Payment type drop-down.
  4. Enter the amount paid into the Amount field.
  5. Select the register to associate the payment with from the Register drop-down.
  6. Select the date the payment was taken from the Payment date drop-down.
  7. Select the time the payment was taken from the Payment time drop-down.
  8. Click Save to finalize the payment. 

Receiving payment in Retail POS

  1. Navigate to Sales history.
  2. Locate the customer's on account sale and click Continue sale. This will return the sale to the sell screen.
  3. Click Pay and apply the payment amount.
  4. 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.

Reporting on account sales

When you close your register at the end of the day, any on account sales started and any payments made against on 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. 

Reconciling the invoice and payment in QuickBooks Online

On 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 the invoice for your register closure and the invoice for your account sale. Refer to How to reconcile an account in the QuickBooks Online help center for detailed instructions to complete this process. 

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