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 |
Journal entry or Bank Deposit 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 (journal entry or Bank Deposit) |
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
Reconcile payouts
How a payout syncs to QuickBooks Online depends on your Bank clearing account type:
If Bank clearing is a clearing (current asset) account, the payout syncs as a journal entry.
If Bank clearing is a bank account, the payout syncs as a Bank Deposit transaction. It appears in the For Review tab of your QuickBooks Online bank feed, where you can match it against your actual bank deposit—the same reconciliation experience Xero customers have.
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
If you use Cin7 Capital powered by Stripe (Stripe Capital), financing disbursements also post to your bank clearing account, and financing repayments are deducted from your payment clearing account. Find out about reconciliation with Stripe Capital.