Importing Deposits to QuickBooks Enterprise
How to synch order deposits (especially for large value orders) with QuickBooks Enterprise.
Deposits are only created when all of the following criteria are met:
- A payment has been made to an order that is less than the total of the transaction
- The order has not been Fully Dispatched and has not been Invoiced
- The order is assigned to a customer i.e., not to "cash customer"
- The deposit date is within 10 days of the date the deposit is being entered
When you enter the Xero module, deposits are calculated.
Setting Up Deposits
Before setting up Cin7, please make sure you having the following set up in your Chart of Accounts in QuickBooks Enterprise:
- A liability account for Sales Deposits
- A current asset account for Purchase Deposits
These accounts are where the balance of the deposits are entered. When the final payment is made, the transactions in these accounts will be reversed with a credit note.
Next, you'll need to set up a service for the Sales Deposit liability account in QuickBooks Enterprise.
Next, we need to let Cin7 know which are the deposit accounts to post to.
To do this:
- While logged in as an Administrator, select your username in the top right, then select Settings.
- Select Accounting.
- From the accounting menu, select QBE Setup.
- Select Default Accounts on the left-hand side.
- From the Manage Deposits drop-down, choose "Yes".
You will notice two additional fields appear below for "Deposit Accounts".
- Select the liability account for sales deposits from the drop-down list.
- Select the current asset account for purchase deposits from the drop-down list.
- Select Finish to save these settings.
After switching on deposits from the settings, two new modules will appear in the left navigation: Purchase Deposits and Sales Deposits. Finally, you will need to grant any standard users access to these modules if they need to use them. To do this:
- While logged in as an Administrator, select your username in the top right, then select Users.
- Choose Select for a user.
- On the left-hand side, find the deposit modules, and assign the user permission to each module.
- Select Update to save the changes.
Your account is now set up to sync deposits.
Adding a Deposit to a Purchase or Sales Order
To add a deposit to a Sales Order or Purchase Order:
- Create a transaction as usual, but do not dispatch the goods.
- In the payments section at the bottom of the page, select a payment method for the deposit from the Payment Type drop-down and enter the value of the deposit.
- Select "Deposits" from the drop-down that appears.
- Finally, click Add New Line to add another payment, and select Not Paid for this line - this is the remaining amount.
Next, you will need to import this deposit into QuickBooks Enterprise. To do this:
- From left navigation, select Accounting then QuickBooks Enterprise.
- Upon entering the QuickBooks Enterprise module, any deposits created will be created and queued for import.
These deposits may be viewed in the Deposits modules.
- Deposits in Sales Orders or Purchase Orders will appear in the Import Orders section or Import Purchase Orders section respectively.
- Import these orders as you usually would - see Importing Sales Orders or Importing Purchase Orders.
Importing a Sales Order Deposit will create a Sales Invoice in your chosen deposit account. Importing a Purchase Order Deposit will create a Bill in your chosen deposit account.
You can continue this process as many times as necessary for subsequent payments.
Reversing the Deposit
When your sales order or purchase order is fully paid, you will need to complete three activities:
- Add a payment for the remaining amount.
- Import into QuickBooks Enterprise a Credit Note or Supplier Credit Note, which reverses the deposits.
These credits will be created for you automatically by the system.
- Import the original Purchase Order or Sales Order as a Bill or Invoice respectively.
To add a remaining payment:
- Find the original order in the relevant module.
- In the payments section at the bottom of the screen, add a payment method to the remaining amount (currently set to "Not Paid").
- Enter an invoice date to invoice the order.
- Fully Dispatch the items in the order if you haven't already done so.
Next, you will need to import both the Sales Order and a Credit Note into Xero, to reverse the deposit amount and invoice the full amount. To do this:
- From left navigation select Accounting then QuickBooks Enterprise.
- Upon entering the QuickBooks Enterprise module, any deposits will be reversed if their related invoice has been fully paid, invoice and fully dispatched.
To see the reversed Deposit - check the relevant deposits module. You'll notice the quantity is negative.
- For Sales, you will see that the invoice exists in the Sales Orders section ready to import, and the reversed deposit will be in the Credit Notes section to import.
For Purchases, you will see that the Purchase Order exists in the Purchase Orders section ready to import, and the reversed deposit will be in the Supplier Credit Notes section to import.
I've added a deposit but no deposits have appeared in the deposits modules?
First, make sure you visit the QuickBooks Enterprise module to trigger the creation of deposits. If no deposits appear, make sure the deposits meet the criteria mentioned above.