Reconciliation with Cin7 Pay and QuickBooks Online

Reconciliation with Cin7 Pay and QuickBooks Online

Overview

This article explains how Cin7 Pay transactions sync to QuickBooks Online and how to reconcile payments, fees, surcharges, and payouts.

Transactions recorded by Cin7 Pay

Cin7 Pay creates the following transactions:

  • Payments

  • Payment fees

  • Surcharges

  • Payouts

Transaction required for reconciliation

This table shows which transactions must sync to QuickBooks Online for reconciliation. It includes every transaction recorded by Cin7 Pay, as well as the underlying invoice or credit note.

Transaction

Note

Invoice

Required

Payment

Required

Payment fee

Required

Surcharge

Required only if surcharges are activated

Payout

Required

Credit note

Required for refunds and returned goods

Transaction flow

This table describes the Cin7 Pay transaction flow, what happens in Cin7 Omni, and accounting transactions created in QuickBooks Online.

Transaction

Result in Omni

Accounting entry (after sync)

1. Sale invoiced

Invoice created

Invoice created

Dr—Accounts receivable

Cr—Sales income

2. Payment received

Payment recorded on sale

Payment created 

Dr—Payments clearing

Cr—Accounts receivable

Payment fee recorded on sale

Manual journal created

Dr—Payment fees expense

Cr—Payments clearing

Surcharge recorded on sale

Manual journal created

Dr—Payments clearing

Cr—Surcharge income

3. Payout received

Payout created

Receive money transaction created

Dr—Bank clearing

Cr—Payments clearing

Example: Reconciling Cin7 Pay with QuickBooks Online

In this example, a $100 payment is received on an invoiced sales order. The payment includes a $3.30 processing fee, and a $10 surcharge is applied to the transaction.

Accounting entry

Account

Debit

Credit

Invoice

Accounts receivable

100

Sales income

100

Payment

Payments clearing

100

Accounts receivable

100

Payment fee (manual journal)

Payment fees expense

3.30

Payments clearing

3.30

Surcharge (manual journal)

Payments clearing

10

Surcharge income

10

Payout (receive money transaction)

Bank clearing

106.7

Payments clearing

106.7

To complete the process, reconcile the payout in QuickBooks Online. The final balances of each account are:

  • Accounts receivable: 0

  • Sales income: Cr 100

  • Payments clearing: 0

  • Payment fees expense: Dr 3.30

  • Surcharge income: Cr 10

  • Bank clearing: 106.7

Reconciling payments against quotes and sales orders

You can receive payments against quotes and non-invoiced sales orders via Invoice Pay Online and merchant-initiated transactions.

These payments can’t sync to QuickBooks Online until the quote is accepted and the sales order is invoiced.

Troubleshooting

Clearing account balances

If your payment clearing or bank clearing accounts have unexpected balances, audit the following accounts used by Cin7 Pay:

  • Payments clearing

  • Bank clearing

  • Payment fees expense

  • Surcharge income

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