cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Square via Commerce Sync at all stages (Sales/Invoice, Payment, Deposit)

Hi everyone,

 

I have recently transitioned from a different accounting software (Xero - fewer capabilities, but more simple) to QBO. The business has three locations, and so I use Commerce Sync to separate the sales into each location while still having a single set of financial statements.

 

I'm struggling to make sure I'm doing the right thing at all stages of the transaction, since a lot of the feeds are automatic, and things can get out of control quickly. I'm going to lay out my understanding of each stage, and would appreciate some feedback.

 

1) Sales/Invoice

 

Sales (let's say just credit card in this scenario) at each location are recorded by Square throughout the day. At the end of the day they are sent to Commerce Sync, who sends them to Quickbooks. This shows up in the form of an invoice automatically, and there is nothing I need to do. A receivable is created, and the entry for the entire day would just be:

 

A/R                    XX.XX

                    Sales                   XX.XX

 

2) Payment

 

Square issues payment. This gets posted to Undeposited Funds, and offsets the receivable. It appears that this workflow happens automatically with Commerce Sync. Assuming I want to keep using Undeposited Funds, it doesn't appear that I need to do anything. The entry would be:

 

Undeposited Funds                    XX.XX

                   Accounts Receivable                   XX.XX

 

3) Deposit

 

This is where I'm getting confused. In Xero, invoices would debit to a clearing account, and then when the deposit was made into my bank account I would offset the clearing account with a credit. Here, it seems I need to create a deposit (daily? weekly? does it matter?) which would offset the Undeposited Funds and debit the bank account. Is that right? So is the entry essentially:

 

Cash                    XX.XX

                  Undeposited Funds                   XX.XX

 

 

After that, I'm unclear on two things:

 

First, if I created a deposit, then what do I do when I need to review the transactions in my bank account?

 

Second, I have an account labeled SYNC009 Square Deposit. When I review a bank account deposit, it looks like this account gets debited, almost as if it is the account offsetting Undeposited Funds by default. How does this account fit into the workflow?

 

Very sorry if I'm completely off-base. I'm new to the software and can't find a comprehensive source on how to work through these, or which settings need to be changed. I appreciate your guidance!

1 Comment
Highlighted
Moderator

Square via Commerce Sync at all stages (Sales/Invoice, Payment, Deposit)

I really appreciate the detailed information to ensure that we got your concern correctly, dtwilmot1.

 

The Steps 1-2 are prefect. They are laid out correctly and this is how the A/R workflow works in QuickBooks Online. Meanwhile, the Step 3 depends on you whether to create a bank deposit manually or not.

 

When you go to the Banking (For Review) page to categorize your bank transactions, you can Add, Match, or Transfer

The cleared bank transaction can be matched directly to:

  • the invoice payment (Undeposited Funds)
  • to the bank deposit (if you have created one)

For your second question, the SYNC009 Square Deposit account has something to do with the syncing process between QuickBooks Online and Square. I'd recommend contacting the Square support to see if they can further explain this part. You can get their contact information directly to their website or through the Apps menu in QuickBooks Online.

  1. Select Apps on the left menu and go to the My Apps tab.
  2. Look for the Square app and click the Action button.
  3. Select Support.

Or 

  1. Select Apps on the left menu and go to the Find Apps tab.
  2. Search for Square and click on the result.
  3. Under the App information, you can get their Contact.

Don't be sorry when you want to learn more. We want to ensure that you'll be able to use the program at its best.

 

Keep us posted on what you'll find out so we can also take note of it on our end.

Need to get in touch?

Contact us