Sync deposits with QuickBooks Online

Sync deposits with QuickBooks Online

Overview

Find out how to set up and create deposits and sync them with QuickBooks Online.

Deposits are records of advance payments to vendors or from customers.

For example, say you pay a vendor before receiving a bill for the purchase. Your payment can be recorded against the purchase order in Cin7 Omni, but when the money leaves your bank account, there’s no bill to reconcile it against in QuickBooks Online.

To reconcile your payment, you must create a purchase deposit. That deposit recognizes a prepaid amount on your balance sheet, because you’re owed goods of equal value; once you’re billed, you can reverse the deposit and recognize the value of the inventory.

Likewise when you receive payment from a customer before invoicing the sale. Because you can’t reconcile their payment against any invoice, you must create a sales deposit. That deposit creates a liability because you owe the customer goods of equal value; when you dispatch and invoice the sale, you can reverse the deposit and recognize the revenue.

In QuickBooks Online, the transactions created to match the deposits and reversals are given unique references. Those references, shown in the Reference columns on the Sales and Purchase tab of your QuickBooks Online integration dashboard, is a combination of (a) a unique serial number and (b) the original deposit’s (or reversal’s) reference.

Note that, if the reference on the dashboard exceeds 21 characters, it will be truncated to 21 characters in QuickBooks Online.

Set up deposits

Before creating and syncing deposits, you must (1) enable users to manage deposits and (2) configure deposit accounts.

1. Enable users to manage deposits

  1. Log in to Cin7 Omni as an administrator.

  2. Open the user menu and then select Users.

  3. Next to the user’s name, select Select.

Now either assign or configure the user’s role:

  • Assign the user a role with permission to manage deposits: On the User Particulars tab, set the user’s Role to a role with permission to manage deposits (find out more about managing user roles).

  • Assign and configure a custom role: On the User Particulars tab, set the user’s Role to Custom. Then, on the Module Permissions tab, give the user Standard or Manager permissions for the Purchase Deposits and Sales Deposits modules (under Accounts).

Finally, select Save.

2. Configure deposit accounts

First, in your QuickBooks Online chart of accounts, create a liability account for sales deposits and a current asset account for purchase deposits. Then configure your deposit accounts in Cin7 Omni:

  1. Log in to Cin7 Omni as an administrator.

  2. From the Accounting menu in the navigation, open your QuickBooks Online integration.

  3. Open Settings.

  4. Open the Settings tab.

  5. Select Manage Deposits.

  6. Select Automatically Create Deposit Accounts & Service Products. Wait for the page to reload.

  7. Under Manage Deposits,

    • set Sales to Cin7-Sales Deposit, a liability account for sales deposits, and

    • set Purchases to Cin7 Purchase Deposit (Other Current Asset), a current asset account for purchase deposits.

  8. Select Save Settings.

Create deposits

You’ve received a payment towards a sale, or made a payment towards a purchase, but the transaction hasn’t been invoiced or billed.

Let’s create a deposit to reconcile the payment.

Keep in mind you can only create deposits for a sales order or purchase order (a) assigned to a non-cash contact, (b) without an Invoice Date, without (c) a Fully Dispatched date (sales orders) or Fully Received date (purchase orders), and (d) with a positive Total.

  1. Open the sales order or purchase order.

  2. Under Payments, add the payment:

    • Choose the Payment Type.

    • Enter the value of the payment into Amount – if the payment is for a deposit towards a foreign currency purchase order, enter the value of the payment in your local currency and the foreign currency (Amt).

    • Ensure the Date is within the past ten days. Your deposit won’t get created (step 4) if the Date is any older.

    • Enter “Deposit” into Comments.

  3. Select Approve.

  4. From the Accounting menu in the navigation, open your QuickBooks Online integration. You’ll get a notification that your deposit has been created.

To confirm your deposit was created, open Sales Deposits or Purchase Deposits from the Accounting menu in the navigation. Or check the Comments field of the payment on the transaction, which should say “Deposit Created”.

Now you need to sync your deposit to QuickBooks Online.

Sync deposits

You’ve created your deposit and received or made the matching payment. To actually reconcile the two, you need to sync the deposit into QuickBooks Online.

  1. Log in to Cin7 Omni.

  2. From the Accounting menu in the navigation, open your QuickBooks Online integration.

  3. Open either the Sales > Invoices tab (to sync sales deposits) or the Purchases > Supplier Invoices tab (to sync purchase deposits). The Transaction Type of your deposit is either Sales Deposit or Purchase Deposit, respectively.

  4. In the right-hand column of checkboxes, either

    • select the deposit(s) to sync, or

    • to sync all deposits (and other listed transactions), select the checkbox in the header.

  5. Select Upload Selected (or Upload All).

You’ll get a notification if any deposit fails to sync. Find and fix the deposit  on the Errors > Invoices tab (sales deposits) or Errors > Supplier Invoices tab (purchase deposits) and then re-sync it.

Now you wait until the sales order is invoiced or the purchase order is billed. In the meantime, you can create and sync as many additional deposits as you need.

Reverse deposits

Finally, the sale order has been invoiced or the purchase order billed. It’s time to sync the sale or purchase, reverse the deposit, and realize the revenue or inventory.

Here’s how it works.

When you open your QuickBooks Online integration for the first time after having invoiced the sales order (entered its Invoice Date) or billed the purchase order (entered its Invoice Date and Supplier Inv No), Cin7 Omni will automatically reverse the deposit.

Once the deposit has been reversed, you need to sync (a) the sales or purchase order and (b) the reversed deposit and to QuickBooks Online:

  1. Sync the sales order  or sync the purchase order.

  2. On your QuickBooks Online integration dashboard, open either the Sales > Credit Notes tab (to sync reversed sales deposits) or the Purchases > Supplier Credit Notes tab (to sync reversed purchase deposits). The Transaction Type of your reversed deposit is either Sales Deposit or Purchase Deposit, respectively.

  3. In the right-hand column of checkboxes, either

    • select the reversed deposit(s) to sync, or

    • to sync all reversed deposits (and other listed transactions), select the checkbox in the header.

  4. Select Upload Selected (or Upload All).

Was this article helpful?

Have more questions? Submit a request