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QBO: Mapping the Payment Account and Deposit Accounts on your Payment Types
QBO: Mapping the Payment Account and Deposit Accounts on your Payment Types

Every payment type needs to be mapped to two QBO GL accounts in the QBO integration. Here is why and how to map those two accounts.

Derek Stotz avatar
Written by Derek Stotz
Updated over 4 years ago

When using the QBO integration, each payment type needs to be mapped to two QBO General Ledger accounts (a 'Payment' Account and a 'Deposit' Account).

  1. Payment Account - This is the account you want to debit when that payment type is used as the tender. Typically you'd map to a clearing account (asset) such as 'Cash in Drawer' or, in the example above, 'Credit Card Receivables', but it might be mapped to a decrease in a liability, for example your 'outstanding giftcards' liability account when GCs is the tender type. You could map it to an expense account but keep in mind anyone ringing in a sale has the ability to select that payment type. We recommend always mapping to an account that acts as a 'clearing' account so that you can monitor and reconcile the payment types tendered. 

  2. Deposit Account - This is the account you want to be credited when you take the specific payment type (credit card in the screen shot example above) for a deposit (such as on a layaway or a sales order). This would typically be set up as a liability. You may not take deposits (or prepayments) in Heartland Retail (for things like layaways or Sales Orders) but you do need to map the 'deposit account' on all tender types to a QBO account. Typically we see customers map the 'deposit account' on all tender types to 'Customer Deposit Liability'. 

Here's an example: Someone comes into your store and wants to buy a $100 dress, and they are going to pay $25 up front and $75 later. The first deposit of $25 (where you are taking payment from the customer but not yet giving them the inventory) will debit the payment account and credit the deposit account. Once the transaction has been paid for in full (the customer returns to pay the $75),  the sale will be completed (because full payment has been made and the customer is leaving with the inventory) and the entry will debit the deposit account and credit the payment account. You'll see this reflected in "deposits relieved" when you look at your daily summary for the day.

Note: Each payment type can be mapped to only one 'payment account' (the account you want to debit when you take that payment type). This means that you can't have QBO accounts by credit card types (Visa, AMEX, Mastercard, etc.) unless you create payment types for each of these card types and then map each of the 'payment accounts' on those payment types to the QBO general ledger accounts. We don't recommend this as via reporting in Heartland Retail there is a group 'Payments: Credit Card Type' that allows you to report on credit card payments by card type. 

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