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Assigning default accounts – Step 3

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Step 3.  Accounts assignment

In this step, we are getting into mapping accounts so your Sync to Accounting app can deliver the data to the account of your choice in your QuickBooks Online system. For this mapping, no compass or GPS i necessary.

In the window, you see five account categories. When you click on one of these, a list of accounts, automatically populated from your QuickBooks Online chart of accounts, opens. From the list, you select the account you want.

Go to Settings and in the Step 3 window “Default assignments,” assign an account in every category by selecting from the drop-down list.

Note: The accounts listed are from your connected QuickBooks Online account chart of accounts. If you need to create a new or additional account for one of the five fields, you can do that in your accounting system. Once you are finished, you need to update the drop-down list by clicking on “Refresh Accounts,”

Below is an explanation of each field.

  • Default expense account for PayPal fees – this account will be used for recording PayPal fees.
  • Default income account for PayPal sales – this account will be used for recording revenue ( all “sales” transactions).
  • Default liability account for collected tax – taxes (if any) collected for sales will be recorded to this account.

Note: If you do not collect any taxes, you still need to pick an account for the system to be happy, cheerful, and not emitting smoke when you come in one morning. Since there won’t be any data, nothing will be posted to that account. But the system wants an account. That’s so little to ask, don’t you agree?

Another note: We do not have the information necessary to split taxes collected by tax receiving entity. You’ll have to work within QuickBooks Online for that purpose.

  • Default income account for shipping/insurance – like taxes, you need to select an account even if you do not have shipping, handling, or insurance charges.
  • Default account for vendor credit – the single account used to capture all credit and refunds paid by vendors to you. Because of the complexity of knowing where a vendor refund should go, a single default account is used. For example, we don’t know which accounting period the purchase was made in so can’t automatically link it back to that account.
  • Refresh accounts link – if you make changes to your QuickBooks Online chart of accounts, click this link and your drop-down choices will be updated.

Tip: Click the gray circle with a “?” for pop up help tips.

Note:  There will be no default account assigned for Payments – it must be configured (if necessary) in vendor/payee mapping table in Settings. That process is covered in another tutorial.