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QuickBooks Online Integration - How does it work, and how do I set it up?

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  Important

This integration requires a QuickBooks Online Plus or Advanced subscription

The QuickBooks Online integration enables Retail POS customers to easily post their end-of-day sales, payment counts, purchase orders, gift cards, store credit, and cost of goods sold to their QuickBooks Online account. This makes it quick and easy for retailers to keep on top of their accounting and reduces the need for double-data-entry.

Once you've turned the integration on:

  • When you close your register at the end of the day, your sales totals and payment counts, including any payment discrepancies, will be sent to your QuickBooks Online account.
  • On account sales will be sent to QuickBooks Online, as well as any payments that are applied to those sales in Retail POS.
  • If you use gift cards or store credit, your liability totals for these features will post to QuickBooks Online. 
  • Your payment totals can either be sent as a total amount, or you can choose to break them down by product/inventory type, using the classification types you've set up in Retail POS.
  • You can also choose to send a cost of goods sold (COGS) summary to your QuickBooks Online account. This uses a weighted average calculation method, so make sure you check with your accountant to see if it's appropriate for your business.
  • Purchase orders can also be sent to QuickBooks Online if you choose to do so. 

This allows you to easily reconcile your payment deposits into your bank account.

Before setting up the QuickBooks Online integration

What to know before you begin

Retail POS only integrates with QuickBooks Online accounts.

Payments that are applied to on-account sales in Retail POS will sync to Quickbooks Online, but payments that are applied to on-account sales in QuickBooks Online will not sync back to Retail POS. These payments will have to be accounted for manually in Retail POS. 

If you are located in the US, the QuickBooks Online integration should only be used if all products in each outlet have the same tax rate. This is because QuickBooks Online US only allows for a single tax rate per transaction. 

For example, if you have most items in a store using a combined 15% tax rate, but some using only a 5% tax rate, you should not use the integration.

This does not affect retailers who use a different tax rate in different outlets. For example, 10% on products in Outlet A, and 5% on products in Outlet B provided all products within that outlet have the same tax rate.

This also does not affect retailers who have all products in an outlet using a tax rate, but some products zero-rated (0% tax).

Do not use the integration if you have applied custom tax rates to a product within an outlet, such as a luxury tax on some items, or a cheaper tax rate for fresh fruit or vegetables.

The Retail POS-QuickBooks integration allows you to:

  • Post register closures to QuickBooks. So, we'll track your sales totals and your payment totals.
  • Map discount totals to a dedicated discount item in QuickBooks Online
  • Sales totals can either be a total amount or broken down by product types
  • Send Cost of Goods Sold (COGS) each day to QuickBooks Online
  • Send Purchase Orders to QuickBooks Online
  • Send store credit totals to QuickBooks Online
  • Send gift card totals to QuickBooks Online
  • Send on account sales to QuickBooks Online. 

There are some things you won't be able to post to QuickBooks automatically Online. These include:

  • Layby sales

Connect QuickBooks Online to your Retail POS account

Before you begin setting up

  1. Set up all your tax rates in Retail POS.
  2. Set up all your tax rates in QuickBooks Online.
  3. Set up a payment discrepancies product in QuickBooks Online. This allows you to track the differences between the amount expected when you close your register and the amount you count.
  4. Set up an inventory assets account in QuickBooks Online. This is where your purchase orders will be sent. 
  5. If you'd like your sales totals broken down by product type, make sure your products have product types set in Retail POS.
  6. If you'd like discounts to be mapped to a different item, create a Discounts item in QuickBooks Online
  7. Set up a corresponding product or service item in QuickBooks Online for each product type you have in Retail POS.
  8. Setup a store credit/gift card liability expense and liability account in QuickBooks Online. 

  Note

When selecting where to send Sales and Count Discrepancies, you will only be able to select your QuickBooks Online products and services. You will not be able to select all of your accounts. QuickBooks online has a default sales product set up.

For more information on QuickBooks Online products and services, or to create a new product in QuickBooks Online, click here. You should complete this before turning on the integration.

You are now ready to start setting up.

Setting up the QuickBooks Online integration

  1. Navigate to Setup > Apps.
  2. In the Track financials section, click Add to Lightspeed Retail under QuickBooks Online. If you're not already logged in to QuickBooks Online, you will be prompted to log in.
  3. Click Authorize to confirm you'd like to link your QuickBooks Online account to your Retail POS account. You will be taken to the QuickBooks Online settings page in Retail POS.
  4. Select the QuickBooks Online product you'd like to send your daily sales totals to. If you choose to break down your daily sales by product type, this account will only receive sales for products with no type mapping.
  5. Select the QuickBooks Online account you'd like to send any discrepancies in your end-of-day count to.
  6. Select the QuickBooks Online account you'd like to send any rounding differences to. Retail POS will include a rounding line to ensure that the total of the register closure invoice matches the total of the payments taken.
    The total payments ALWAYS match what was taken in Retail POS, however, due to small differences in how QuickBooks and Retail POS calculate sale totals the invoice can differ. In the cases where these totals differ, a rounding line will be used.
  7. If you'd like discounts to be mapped to a different item in QuickBooks Online, select it from the drop-down otherwise leave it blank.
  8. If you want to use product type reporting, tick the checkbox, then match each product type with a corresponding product or service in QuickBooks Online.
  9. You can choose to send expense information to QuickBooks Online. Leave these blank if you don't want to record COGS information in QuickBooks Online. You'll need to select both a Cost of Goods Sold and Inventory asset account - remember, if you're not sure which to pick, check with your accountant. Your purchase orders will be sent to the account you select for Inventory assets. 
  10. If you are using store credit, select a store credit expense and liability account from the drop-down options in the Liabilities section. 
  11. If you are using gift cards, select a gift card revenue and liability account from the drop-down options in the Liabilities section. 
  12. For each payment type, pick the matching payment type in QuickBooks Online.

  13. For each tax type, pick the matching tax type in QuickBooks Online. Grouped taxes in Retail POS must be mapped to a grouped tax in QuickBooks Online.

  14. Click Save to turn on the integration.

The integration is now set up!

  Important

If you add any more payment types, tax rates, or product types, don't forget to update your QuickBooks Online settings with this information.

For more information on how to use the QuickBooks Online integration, refer to our Using the QuickBooks Online integration guide.

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