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Configuring your QuickBooks Online Integration

Last updated 08/01/2021

Configuring QuickBooks Online integration to match accounting setup.

Overview


There are six major sections for the QuickBooks Online Settings page.

    1. Setup Wizard
    2. General Settings
    3. Default Accounts
    4. Invoice Options
    5. Manage Deposit
    6. Ecommerce Taxes (U.S. Only)
    7. Get Tax Rates For Backend Sales & Quotes (U.S. Only)

Before starting the configuration process, you must have done the following:

  • Set up your General Ledger Accounts correctly.
  • Set up all the tax rates in QuickBooks Online that you are likely to use. If you are based in the USA we recommend enabling the QuickBooks Online Automated Sales Tax feature. 
  • Discussed the above with your accountant.

Once the above has been confirmed, navigate to the settings page to configure QuickBooks Online:

  1. Log into Cin7 as an Administrator.
  2. From the left navigation, select Accounting.
  3. Select QuickBooks Online Dashboard.
  4. From the top right, click select the gear icon.
  5. Select Settings.

Setup Wizard


Now that you understand the basic mappings of QuickBooks Online accounts with Cin7, it is recommended to run the QuickBooks Online setup wizard. The setup wizard is an easy step-by-step guide to assist with configuring Cin7 accounts to your QuickBooks Online account.  

Start integrating QuickBooks Online with Cin7 using the QuickBooks Online Setup Wizard:

  1. Log into Cin7 as an Administrator.
  2. From the left navigation, select Accounting.
  3. Select QuickBooks Online Dashboard.
  4. From the top right, select the gear icon.
  5. Select Settings.
  6. Select Start Setup Wizard.

General Settings


Is Multi-Currency

If you buy/sell in multiple currencies, you will need to select Yes. You must have the correct QuickBooks Online pricing plan to add multi-currency.

Is mainly B2B?

If a majority of your sales are to other businesses, choose Yes.

Update COGS for Number of Past Months

How many months would you like to keep COGS calculations open in Cin7 for reimport should the value change? For new accounts, choose the default setting of 1 month.

Default Accounts


Default accounts are the general ledger (GL) accounts in QuickBooks Online that Cin7 transactions are sent to, unless otherwise specified by an "alternative GL account".

For the Perpetual method you will need:

  • A revenue account for sales. 
  • A current asset account to track inventory values.
  • An expense account for cost of goods sold.
  • An expense account for non-stock purchases.
  • An expense account for the stock loss, shrinkage or write-offs.
  • An expense account for Freight and Customs duty.

If there is more than one relevant account you could use, it makes sense to make the default account the account to which a majority of transactions are sent.

List Ledger Accounts

In the form, in this section, you decide how Cin7 should code transactions. You should read the descriptions below, then enter the relevant account numbers into the blank fields.

Account Name Account Type Appears in QuickBooks Online Used for
Stock On Hand Current Asset Balance Sheet This is the inventory/SOH account that Cin7 will credit or debit. All Purchase Orders will be sent to this account. This must not be the default QuickBooks Online inventory account.
Sales Revenue P&L The primary Sales account that is used in QuickBooks Online. For default account purposes Cin7 will create a new revenue account and a service.  
FreightSales Revenue P&L If you wish to split freight sales (not freight costs) into a separate account. This is commonly just the same as your Sales account above.
COGS Direct Costs P&L This is the account to which all Cost of Goods Sold should be sent.
PurchaseDirectCost Expense P&L This is the account to which the cost of all 'non stock' items are sent when purchased.
Adjustments Overhead P&L An expense account dedicated to stock loss/shrinkage/write offs. If you have a simple COA it could just be 'General Expenses'
Customs Expense P&L An expense account dedicated to tracking the customs duty incurred from acquiring inventory. 
Freight Expense P&L An expense account dedicated to tracking the freight expense incurred from acquiring inventory. 

 

Invoice Options


Invoice Options allow you to select certain fields from Cin7 to be to export from Cin7 to QuickBooks Online account for invoices. There are two sections:

  1. Custom Fields in QuickBooks Online
  2. Shipping Information
Custom Fields in QuickBooks Online
Name Appears on the invoice in QuickBooks Online Options
Field 1 Invoice field Customer PO Number, Payment Terms, Payment Method, Project Name
Field 2 Custom 2 Customer PO Number, Payment Terms, Payment Method, Project Name 
Field 3 Custom 3 Customer PO Number, Payment Terms, Payment Method, Project Name
Shipping Information
Name Appears in QuickBooks Online Used for
Address Shipping Address  Checking this tick box will ensure the delivery address on the invoice (within Cin7) will appear in the Shipping Address field on the invoice in QuickBooks Online. 
Carrier Ship via Checking this tick box will ensure the text in the Carrier box on the invoice (within Cin7) will appear in the Ship via field on the invoice in QuickBooks Online. 
Tracking Code Tracking no.  Checking this tick box will ensure the text in the Tracking Code box on the invoice (within Cin7) will appear in the Tracking no. field on the invoice in QuickBooks Online. 
Fully Dispatched Date Ship Date Checking this tick box will ensure the date entered into the Fully Dispatched Date field on the invoice (within Cin7) will appear in the Ship Date field on the invoice in QuickBooks Online. 

Manage Deposits


If you take deposits for your orders, especially for large value orders, you may wish to sync deposits with QuickBooks Online. To enable this feature you will need to click the checkbox next to Manage Deposits in the QuickBooks Online dashboard settings. Once this is completed we recommend clicking on the "Automatically Create Deposit Accounts & Service Products" link. This will create the following two accounting in your QuickBooks Online account;

  • 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.

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:

  1. While logged in as an Administrator, select your username in the top right, then select Users.
  2. Choose Select for a user.
  3. On the left-hand side, find the Deposit modules, and assign the user permission to each module.
  4. Select Update to save the changes.

Your account is now set up to sync deposits.

To learn more about Importing Deposits to QuickBooks Online, click here.

Ecommerce Taxes US Only


Ecommerce tax can be complicated, especially when you have to handle multiple states and counties across multiple sales channels. To make things easy, Cin7 has a special feature that allows you to preserve the fidelity of tax calculated on orders imported from integrated channels. 

To enable this feature, you need to select the checkbox next to "Upload Ecommerce Taxes Into Liability Account (U.S. Only)" in the QuickBooks Online Dashboard settings. Once this is completed, it is recommended to select the "Automatically Create Ecommerce Liability & Service Products" link. This will create a tax liability account for each channel in your QuickBooks Online account.

 To do this;

  1. Log in to Cin7 as an administrator.
  2. While logged in as an Administrator, from the left navigation, select Accounting then QuickBooks Online.
  3. From right, select the gear icon.
  4. Select Settings.
  5. In the “Settings” tab, select the checkbox next to Upload Ecommerce Taxes Into Liability Account (U.S. Only).
  6. Select the "Automatically Create Ecommerce Liability & Service Products" link.
Please note: Do not change the name of any existing integrations as this will cause errors upon importing transactions from Cin7 into QuickBooks Online.

Get Tax Rates For Back-end Sales Quotes


U.S. sales tax can be complicated, especially when you have to handle multiple states and counties across multiple sales channels. To make things easy, Cin7 has a special feature that allows you to preserve the fidelity of tax calculated on orders imported from integrated channels. 

Setting up Alternative GL Accounts


You may not want all your transactions to go to the same default account each time. For accounting reasons, it may be desirable to have, for instance, wholesale transactions go to a wholesale GL Account and retail sales go to your default GL account.

As stated above, it makes sense to set your default account as the account to which a majority of your transactions should go. Use the Alternative GL Accounts for exceptions to the default.

Keeping it Simple

When considering how to set up your alternative accounts, remember that Cin7 has comprehensive management reports that can be used to make business decisions such as the performance of a particular branch, brand or customer group. You will use QuickBooks Online primarily for Financial Reporting.

It is recommended to keep your accounting setup as simple as necessary for Financial Reporting, then use Cin7 to produce Management Reports.

For more information, see Setting up Alternative GL Accounts.

Setting up Tax Rates


To create Tax Rates in Cin7, simply download your Tax Rates from QuickBooks Online. To do this:

  1. From the left navigation, select Accounting then QuickBooks Online Dashboard.
  2. From the top right, select the gear icon.
  3. Select Settings.
  4. Select Get Latest Classes, Accounts, Taxes and Service Items from QBO.

Although it is possible to manually create or update Tax Rates in Cin7, it is recommended to create these Tax Rates first in QuickBooks Online (to ensure they are set up correctly) and then re-downloading them from QuickBooks Online.