Understand how Commerce transactions are categorized QuickBooks Online
by Intuit•15• Updated 10 months ago
Learn how your connected sales channels categorize the transactions in QuickBooks Online.
When you connect your sales channel to QuickBooks Online, Commerce automatically creates accounts, items, and customers to help make sure the app imports your transactions properly.
Important: Do not inactivate or edit anything the app adds. Review and, if needed, update your account mapping first.
- Go to Commerce, then Overview.
- Then, in Channel connections, select a connected channel and go to App Settings.
- Then select Advanced to review the mapping.
- Accounts: Based on industry best practices, QuickBooks creates a number of accounts to track sales, discounts, shipping, and fees charged. You can add account numbers if needed.
- Items: You can update account assigned to the service item if needed.
- Customer: This helps identify which sales channel the transaction came from.
How transactions are categorized
The app enters all of the transactions from your sales channel in a clearing account, based on which sales channel you use:
- Shopify [Name of your shop] Clearing Account
- Amazon Clearing Account
- eBay Clearing Account
Imported transactions from your sales channel will appear as the following in QuickBooks Online.
Sales channel activity | QuickBooks transaction |
Sale | Sales Receipt |
Refund | Refund Receipt |
Fee | Expense |
Adjustment | Deposit |
Deposit (Merchant deposit from [Channel] into seller’s bank account) | Transfer (from the Clearing Account to the selected bank account) |
Payment (Merchant charge from [Channel] to seller’s credit card account) | Transfer (from the Clearing Account to the selected bank account) |
These are the accounts and subaccounts the imported transactions are categorized to:
Parent Account | Sub Account Name | Type | Detail Type |
Channel Clearing Account | Amazon Clearing Account eBay Clearing Account Shopify Clearing Account | Other Current Asset | Other Current Asset |
Channel Pending Balance | Amazon Pending Balance eBay Pending Balance Shopify Pending Balance | Other Current Asset | Other Current Asset |
Channel Reserved Balance | Amazon Reserved Balance eBay Reserved Balance Shopify Reserved Balance | Other Current Asset | Other Current Asset |
Channel Loan Payable | Amazon Loan Payable (Amazon Only) | Other Current Liability | Loan Payable |
Channel Sales Tax Payable | Amazon Sales Tax Payable eBay Sales Tax Payable Shopify Sales Tax Payable | Other Current Liabilities | Sales Tax Payable |
Channel Sales | Amazon Sales eBay Sales Shopify Sales | Income | Sales of Product Income |
Channel Discounts | Amazon Discounts eBay Discounts Shopify Discounts | Income | Discounts/Refunds Given |
Channel Reimbursement | Amazon Reimbursement (Amazon Only) | Income | Other Primary Income |
Channel Shipping Income | Amazon Shipping Income eBay Shipping Income Shopify Shipping Income | Income | Other Primary Income |
Channel Adjustments | Amazon Adjustments eBay Adjustments Shopify Adjustments | Cost of Goods Sold | Other Costs of Services - COS |
Channel Fulfillment and Warehousing Fees | Amazon Fulfillment and Warehousing Fees (Amazon Only) | Cost of Goods Sold | Shipping, Freight & Delivery - COS |
Channel Selling Fees | Amazon Selling Fees eBay Selling Fees Shopify Selling Fees | Cost of Goods Sold | Other Costs of Services - COS |
Channel Advertising | Amazon Advertising eBay Advertising(Amazon & eBay Only) | Expense | Advertising/Promotional |
Channel Subscription | Amazon Subscription eBay Subscription Shopify Subscription | Expense | Other Miscellaneous Service Cost |
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