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Understand how Commerce transactions are categorized QuickBooks Online

by Intuit•15• Updated 9 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.

  1. Go to Commerce, then Overview.
  2. Then, in Channel connections, select a connected channel and go to App Settings.
  3. 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 activityQuickBooks transaction
SaleSales Receipt
RefundRefund Receipt
FeeExpense
AdjustmentDeposit
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 AccountSub Account NameTypeDetail Type
Channel Clearing AccountAmazon Clearing Account
eBay Clearing Account
Shopify Clearing Account		Other Current AssetOther Current Asset
Channel Pending BalanceAmazon Pending Balance
eBay Pending Balance
Shopify Pending Balance		Other Current AssetOther Current Asset
Channel Reserved BalanceAmazon Reserved Balance
eBay Reserved Balance
Shopify Reserved Balance		Other Current AssetOther Current Asset
Channel Loan PayableAmazon Loan Payable (Amazon Only)Other Current LiabilityLoan Payable
Channel Sales Tax Payable Amazon Sales Tax Payable 
eBay Sales Tax Payable 
Shopify Sales Tax Payable 		Other Current LiabilitiesSales Tax Payable
Channel SalesAmazon Sales
eBay Sales
Shopify Sales		IncomeSales of Product Income
Channel DiscountsAmazon Discounts
eBay Discounts
Shopify Discounts		IncomeDiscounts/Refunds Given
Channel ReimbursementAmazon Reimbursement (Amazon Only)IncomeOther Primary Income
Channel Shipping IncomeAmazon Shipping Income
eBay Shipping Income
Shopify Shipping Income		IncomeOther Primary Income
Channel AdjustmentsAmazon Adjustments
eBay Adjustments
Shopify Adjustments		Cost of Goods SoldOther Costs of Services - COS
Channel Fulfillment and Warehousing FeesAmazon Fulfillment and Warehousing Fees (Amazon Only)Cost of Goods SoldShipping, Freight & Delivery - COS
Channel Selling FeesAmazon Selling Fees
eBay Selling Fees
Shopify Selling Fees		Cost of Goods SoldOther Costs of Services - COS
Channel AdvertisingAmazon Advertising
eBay Advertising(Amazon & eBay Only)		ExpenseAdvertising/Promotional
Channel SubscriptionAmazon Subscription
eBay Subscription
Shopify Subscription		ExpenseOther Miscellaneous Service Cost
QuickBooks Online AccountantQuickBooks Online AdvancedQuickBooks Online EssentialsQuickBooks Online Plus

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