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Accounting for Store Credits with QuickBooks Online

Last updated 29/01/2021

Leading practices for accounting for Store Credits for customers using the QuickBooks Online integration.

Overview


Issuing Store Credits requires special treatment. When a Store Credit is issued, it should create a liability until the time at which it is redeemed.

As a result, there are a few small changes required in Cin7. In your accounting software, there will be a few processes that you should follow to make sure financial information is accounted for correctly in QuickBooks Online. This article explains in detail the process of accounting for Store Credits in your companys' QuickBooks Online account. 

  1. Manually journal the Store Credit Liability value into QuickBooks Online.
    • Open the "Gift Vouchers And Store Credits - Created" Insights report.
    • Filter desired date range as follows:
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    • Take the grand total and journal that value directly into QuickBooks Online to reflect an increase to your liability account and decrease your sales account. 
      Note: The person responsible for the journal will need to account for the tax if applicable. 
  2. Manually journal the redeemed Store Credit value into QuickBooks Online.
    • Open the "Gift Vouchers And Store Credits - Redeemed" Insights report.
    • Filter desired date range
    • Take the grand total and journal that value directly into QuickBooks Online to reflect a decrease to your liability account and an increase to your sales account. 
      Note: The person responsible for the journal will need to account for the tax if applicable.