There are two areas in Heartland Retail where the QBO integration lives:
- Settings > Integrations > Quickbooks Online.
- Settings > Financial. This is where you map your financial events in Heartland Retail to the proper General Ledger accounts in your QBO account.
This article explains what you need to do under #2 Settings > Financial in Springboard.
Once your Heartland Retail Account is Connected to Your QBO account (as per this article Connecting Your Heartland Retail Account to your QBO Account), you will need to map the financial events completed in Heartland Retail Journal Entries that get booked to the appropriate general ledger accounts in QBO.
Confirm Imported Accounts from Quickbooks Online
To view the imported accounts:
- Go to Settings and then Click the 'Financial' link in the left navigation menu.
- Click the 'Accounts' tab on the Financial page.
All accounts from Quickbooks Online will appear on this page. You can delete accounts from this page, but note that when you re-import your Quickbooks Online accounts, deleted accounts will appear again.
See this article for more info on Adding Additional General Ledger Accounts to Heartland Retail.
QBO General Ledger Accounts need to be mapped to from financial elements in Heartland Retail in order for journal entries to be completed in Quickbooks Online. Once your accounts have been imported from Quickbooks Online, you can begin the mapping (or configuring) process. To do this, you need to activate and configure the financial system.
Activating the Financial System
To activate the Financial system:
- Go to Settings and then Click the 'Financial' link in the left navigation menu.
- Click the checkbox that says “Use Financial System?” on the Configuration Tab.
Once checked, the 'Financial' page will expand with additional details that explain the status of your financial configuration. The first time you do this, all fields will have red warning indicators.
Below is what the configuration page will look like before you begin configuring. As you progress through the accounting mapping process, these red warning indicators will turn into green checkmarks. The Quickbooks Online sync will not operate successfully until all configuration has been completed.
We will now walk through each section of this page.
Account Mapping - Overview
To avoid redundancy, we will provide an overview of how the mapping process works for all applicable pages in the system where account mapping is required.
On each page that requires a QBO GL Account to be set for the QBO integration to work properly, the account field will have a 'set' link next to it. For example, on each 'Inventory Adjustment Reason' page, each reason has an 'Inventory Offset Account'. The 'Account' that you map to (or 'set' an account to) will be the account that is credited/debited when we sync over the journal entries).
To map the accounts (in the example above, the 'Inventory Offset Account', you will Click the 'Set' link next to the account you want to map.
Once clicked, you will see a popup list of all accounts that have been imported into Heartland Retail from your Quickbooks Online Chart of Accounts.
Select an account from the list and click it. Then you're done. In the example below, every time you adjust out an inventory quantity, using the Inventory Adjustment Reason 'Shrinkage' the 'Inventory Shrinkage' QBO GL account will be debited.
During the mapping process, if you don’t find the account you are looking for in the popup (after hitting the work 'set'), you need to first confirm (or add) that the account is in your Quickbooks Online account and then re-import your accounts into Heartland Retail (as per Adding Additional General Ledger Accounts to Heartland Retail).
Note: at this time, you cannot book a journal entry to an Accounts Receivable or Accounts Payable type account in QuickBooks Online. If possible, we recommend that you map accounts to an Other Current Liability account instead. See Why does the SR to QBO Integration Not Allow me to map to an Account Payable Account?
Here is how each individual section of the system, that requires configuration, is configured. If you go to Settings > Financial > Configuration Tab, you can follow this rest of this article.
Account Mappings: Global Account Mappings
Currently, the only global account mapping is the sales tax override liability account, as per this picture:
If you override the sales tax on a POS ticket, this override account will offset the sales tax liability accounts configured on the “Tax Rules” page. So, if you remove tax from a POS ticket, this will be the account that will be debited for that sales tax collected adjustment.
Account Mapping: Account Mapping Configuration Status
(1) Item Classes
Item Classes are identifiers on the item record that tell Heartland Retail which QBO general ledger accounts to book journal entires to when we sync journal entries to Quickbooks Online.
We designed the financial system to support slightly complex accounting configurations, which means that depending on your Chart of Accounts, there’s either a simple or more complex way to set up Item Financial classes in Heartland Retail. Let’s start with the simple method.
Simple (One Set of Accounts)
Most Heartland Retail customers will use this set up.
If you only have one set of sales, inventory and COGS accounts in your Chart of Accounts, you only need to create one Item Class and set it as the default item class. This means that (1) you don’t need to set financial classes on your items, because all items will use the default class and (2) all resulting journal entry lines will be booked to the same sales, inventory and COGS accounts.
Here’s how to create one default item class:
- Click the “New” button on the Item Classes tab of the Financial page.
- Provide a name for the item class. If you only intend to create one item class, we recommend that you name the Item Class “Default.”
- Click the “Default class?” checkbox.
Note: If you don’t specify an Item Financial Class on the item record, the default class will be used to complete the journal entry. If you don’t specify an Item Financial Class on the item record and you don’t specify a default Item Class, the sync will not operate until you do one of the two.
- Map each account via the “Set" link.
- Click the “Save” button.
You have successfully created a default item class. Above is an example of what your account item class mapping might look like if you are using the general ledger accounts recommended in this article.
Complex (Multiple Sets of Accounts)
Only read the following section if you have multiple sets of sales, inventory or COGS accounts in your Chart of Accounts. Most Heartland Retail customers do not need multiple sets.
If you have more than one global set of sales, inventory and COGS accounts in your Chart of Accounts, you will want to create multiple item classes, which will allow you to book items with a certain financial class to the corresponding accounts in your Chart of Accounts. (For example, you may have one account in your Chart of Accounts for “Accessories Inventory On Hand” and one for “Apparel Inventory On Hand.” If you create one item class called “Apparel” and one called “Accessories,” you will then need to map these classes to the corresponding items in the system. If you sell an item with the “Accessories” class, the resulting journal entries will credit the “Accessories Inventory On Hand” account.).
Some use a separate item class for Consignment inventory because they want to map to different QBO GL Accounts when there is a financial event that involves Consignment inventory.
This method is more complex because it means you have to specify an item class on each item you create. However, you can still create a default class, which will act as a fallback in the event that the system attempts to sync over an item that has no financial class set. Any classes you set on the item record will always override the default class.
(2) Payment Types and (3) Cash Drawers
Heartland Retail allows you to map each payment type to its own QBO general ledger account so each payment types requires a payment account to be mapped. The payment accounts you specify will be debited/credited when a POS sale or return is completed. If you have inactive Payment Types, they also need to be mapped to a QBO General Ledger account. So, while in payment types, check the 'include inactive' button and map those payment types.
This article explains the difference between the Payment Account and Deposits Accounts on each payment type.
Here is the way we recommend you map 'Cash in Drawer' and 'Credit Card' Payments:
(4) Tax Rules
Each tax rule you create requires a tax liability account to be specified. You can use one QBO GL Account for any/all rules or you can use separate QBO GL Accounts for each tax rule. This tax liability account will be debited when a taxable sale is made (and tax is collected) and that tax rule is applied, or credited when a return is completed (and tax is returned) in the POS.
(5) Inventory Adjustment Reasons
Before mapping your Inventory Adjustment Reasons, we encourage you to go to Settings > Reason Codes > Inventory Adjustments and review each active Inventory Adjustment reason codes as each one will require an 'Inventory Offset Account'. That 'Inventory Offset Account' is what is debited when you adjust the inventory out. The inventory asset is always credited when you adjust out inventory quantities - no matter what the reason.
As an example, the most typical inventory adjustment reasons we see are as follows:
Each reason (or reason code) that you use in Heartland Retail when adjusting inventory quantities requires an offset account. If you wish, you can map a different offset account on each reason. It is helpful to know what each reason is used in order to correctly 'map' this Inventory Offset Account. For example, if you have an inventory adjustment reason called 'Shrinkage' (for items that are stolen or identified as missing) you can map the 'Inventory Offset Account' to a Cost of Goods Sold - Shrinkage Expense account.
If an employee has the correct permissions set in Heartland Retail, they can adjust inventory quantities in or out of Heartland Retail (for example for donations, damaged items or items given to employees). When you adjust an inventory quantity out, you have to give the adjustment a reason code. That reason code is tied to a 'inventory offset account'.
(6) Shipping Methods
The only area of the system that currently uses Shipping Methods is the sales order page. If you charge a customer for shipping, that charge needs to be mapped to a shipping income account that you specify on each of the Shipping Methods pages.
(7) Cash Paid/In Out Reasons
If an employee has the correct permission they can take cash out of the cash drawer using Heartland Retail's petty cash feature called 'cash in/out' (for example for a window washer needs to be paid of stamps need to be purchased.) Then the cash is taken out of and put back in the drawer a reason code must be used. That reason code is tied to a 'Cash paid offset account' that you want to debit for the cash removed (credited for cash returned to the drawer). Your Cash in Drawer account is always credited when you take money out using the Cash Paid out feature. The most typical cash paid out reasons we see are: Postage, To Make Change, Store Supplies, Meals, and Marketing. ANYTIME cash is taken out of the drawer (other than when making change for a sales transaction and at the end of the day as part of a drawer count) we recommend you use the cash paid in/out feature.
(8) Gift Card Adjustment Reasons
If you have a gift card adjustment reason called “Donation,” you can map that adjustment reason to a marketing expense account.) If an employee has the correct permission they can adjust gift card balances in or out of Heartland Retail (for example for a gift card donations, a gift card issue for a employee contest, or a gift card issues for a marketing promotion) When you adjust a gift card amount up (increase it), you have to give the adjustment a reason code. That reason code is tied to a 'financial account' that you want to debit for that gift card adjustment. That 'financial account' is what is debited when you adjust the gift card amount and is based on the gift card adjustment reason. Your Outstanding Gift Card Liability account is always credited when you adjust up a GC amount - not matter what the reason. The most common gift card adjustment reasons we see are Marketing, Employee, and Donation.