Before reading this article, you may find this article to be helpful: How does the Springboard Retail to Quickbooks Online (QBO) Integration Work?

Financial Events that Create Journal Entries

Below is a list of 8 financial event types in Springboard Retail that create journal entries in your QBO account. 

  1. Sales Transactions. Customer purchases or returns via the POS or Sales Order features) create 'Tickets'. Tickets are financial events that create journal entries.  Go to Sales > Tickets to see the tickets resulting from POS transactions. Go to Sales > Invoices to see the tickets resulting from Sales Order Invoices. 
  2. Customer Deposits. When you take payment as a deposit from a customer for a layaway or on a  Sales Orders  it is a financial event that creates a journal entries in QBO. 
  3. Purchasing Receipts. Completing a Receipt (from a vendor) in Springboard. Go to Purchasing > Receipts to see the receipts completed that created journal entries in QBO. 
  4. Purchasing Returns. Completing a Return (from a vendor) in Springboard. Go to Purchasing > Returns to see the returns completed that created journal entries in QBO. 
  5. Between Location Transfers. Completing a Transfer Shipment or Transfer Receipt in Springboard. Got to Invenotry > Transfers to see transfers comleted that created journal entries in QBO. 
  6. Inventory Adjustments. Completing Inventory quantity adjustments in Springboard. Go to Inventory > Adjustments -or to -  Inventory > Counts to see inventory quantity adjustments completed that created journal entries.
  7. Giftcard Adjustments. Adjusting a giftcard balance outside of the POS in Springboard creates a finanical event. Go to Sales > Giftcards to see GC balance adjustments completed that created journal entries in QBO. 
  8. Cash Paid In/Out. Entering cash amounts taken out of (or put back into) a cash drawer for expenses such as store supplies or postage drawer is a financial event that creates a journal entry..Go to Sales > Cash Paid In/Out to see the CPI/CPO transactions completed in the POS that created journal entries in QBO.  

If you are using the Springboard Retail to QBO integration you can see all of the financial events in your Springboard Retaiil Account by going to Settings > Integrations > Quickbooks Online > and then the Financial Events Tab. On this tab you can see the status of each  Financial Events with respect to the integration to QBO (For example, which financial events have synced to QBO and which have not). 

For each financial event type above, there is a resulting journal entry in QBO that is  produced by Springboard Retail. Below will provide details on those resulting journal entries. You may want to share this part with your accountant! 

The Journal Entries

You may want to share this part with your accountant! For each of the 8 financial event types listed above, there is a resulting journal entry produced by Springboard Retail, in real time. Below are the resulting journal entries. Understanding this will help you to understand how to configure (or map) your integration. 

1a. Tickets: Sales Transaction: POS 

The following journal entry occurs when a POS ticket is completed:

  • Payment Type Account (Debit) - Sales price
  • Item Class Sales Account (Credit) - Sales price
  • Item Class Inventory On Hand Account (Credit) - Cost of the item
  • Item Class COGS Account (Debit) - Cost of the item

The following journal entry occurs when a return POS ticket is completed:

  • Payment Type Account (Credit) - Returned price
  • Item Class Returns Account (Debit) - Returned price
  • Item Class Inventory On Hand Account (Debit) - Cost of the item
  • Item Class COGS Account (Credit) - Cost of the item

The following journal entry occurs when taxable items are sold in the POS:

  • Payment Type Account (Debit) - Sales price plus sales tax collected
  • Item Class Sales Account (Credit) - Sales price
  • Item Class Inventory On Hand Account (Credit) - Cost of the item
  • Item Class COGS Account (Debit) - Cost of the item
  • Tax Rule Liability Account (Credit) - Sales tax collected

The following journal entry occurs when discounted items are sold in the POS:

  • Payment Type Account (Debit) - Sales price
  • Item Class Sales Account (Credit) - Gross sales price
  • Item Class Markdowns Account (Debit) - Markdown amount
  • Item Class Inventory On Hand Account (Credit) - Cost of the item
  • Item Class COGS Account (Debit) - Cost of the item

The following journal entry occurs when a gift card is issued and sold in the POS

  • Payment Type Account (Debit)
  • Gift Card Liability Account (Credit)

The following journal entry occurs when tax is overridden on a POS ticket:

  • Payment Type Account (Debit)
  • Item Class Sales Account (Credit)
  • Item Class Inventory On Hand Account (Credit)
  • Item Class COGS Account (Debit)
  • Tax Rule Liability Account (Credit)
  • Tax Override Liability Account (Debit)

1b. Tickets: Sales Transactions: Invoices (from Sales Orders)

The following journal entry occurs when an invoice (from a sales order) is completed:

  • Payment Type Account (Debit)
  • Item Class Sales Account (Credit)
  • Shipping Method Income Account (Credit)
  • Item Class Inventory On Hand Account (Credit)
  • Item Class COGS Account (Debit)

2. Deposits: Customer Deposits taken on Layaways or Sales Order Deposits. 

The following journal entry occurs when a pre-payment is collected on a Layaway or a Sales Order (before the actual sale is complete).

  • Payment Type Account (Debit)
  • Deposit Account (for customer liability)  (Credit)

3. Purchasing Receipt

The following journal entry occurs when a purchasing receipt is completed:

  • Item Class Inventory On Hand Account (Debit)
  • Item Class Inventory Purchases Received Account (Credit)

4. Purchasing Return

The following journal entry occurs when a purchasing return is completed:

  • Item Class Inventory On Hand Account (Credit)
  • Item Class Inventory Purchases Returned Account (Debit)

5. Inventory Transfers

The following journal entry occurs when a transfer out (shipment) occurs:

  • Item Class Inventory On Hand Account (Credit)
  • Item Class In Transit Inventory Account (Debit)

The following journal entry occurs when a transfer in (receipt) occurs:

  • Item Class Inventory On Hand Account (Debit)
  • Item Class In Transit Inventory Account (Credit)

6. Inventory Adjustments

The following journal entry occurs when a positive inventory adjustment occurs:

  • Item Class Inventory On Hand Account (Debit)
  • Adjustment Reason Inventory Offset Account (Credit)

The following journal entry occurs when a negative inventory adjustment occurs:

  • Item Class Inventory On Hand Account (Credit)
  • Adjustment Reason Inventory Offset Account (Debit)

7. Gift Card Adjustments

The following journal entry occurs when a positive gift card adjustment occurs:

  • Gift Card Adjustment Reason Offset Account (Debit)
  • Gift Card Payment/Liability Account (Credit)

The following journal entry occurs when a negative gift card adjustment occurs:

  • Gift Card Adjustment Reason Offset Account (Credit)
  • Gift Card Payment/Liability Account (Debit)

8. Cash Paid Out and Cash Paid In

The following journal entry occurs when a cash paid out is completed:

  • Cash Drawer Account (Credit)
  • Cash Paid Reason Offset Account (Debit)

The following journal entry occurs when a cash paid in is completed:

  • Cash Drawer Account (Debit)
  • Cash Paid Reason Offset Account (Credit)

Now knowing the above, you and your accountant will better understand how to set up the 'mapping' in Springboard Retail when you get the step of  Configuring (or Mapping) the Quickbooks Online Integration  when you are setting up your Springboard Retail to QBO integration.

More Detailed Information on the Integration

After reading all the available articles, should you have any questions about our integration or be interested in training related to the Springboard Retail to QBO Integration, please just let us know at support@springboardretail.com. 

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