Recording sales transactions
Sales transactions are recorded as Deposits in QuickBooks Online.
You have a choice of recording transactions in one of two ways, “Complete” or “Fees only.” To avoid double recording of the same transaction, once it has been recorded, a green check mark is displayed next to it. This check mark cannot be removed or the transaction submitted for processing as further protection against double entry.
You can select either the Manual or Automated processing mode for recording Refund transactions.
If you turn the Automated mode ON – each new transaction will be
automatically recorded by the system in QuickBooks Online daily.
In the Manual mode – you must initiate recording by selecting (clicking in the checkmark box) one or multiple transactions. After selecting the transactions, click the “Submit” button.
Below is an example of a sales transaction that has been successfully processed in your QuickBooks Online account. Notice the green check mark at the left as described earlier.
Notification of successful processing will come up on the left side of the screen:
To avoid double recording of the same transaction, the system will prevent selecting it to be processed again.
Sales transactions are recorded as “Deposits” in QuickBooks Online.
Note: They will not show up as Sales receipts or Invoices.
There are two ways to find your sales transactions in QuickBooks Online:
- Use the Quick view of your latest transactions in the Search pop up by clicking on the magnifying loop icon located in the upper right corner
- Go to the Customers tab and find a deposit for the specific customer. Using this second method is a little tricky and requires a more explanation about how you can see sales data.
Note: Every time the Sync to Accounting system processes a sales transaction (deposit), it searches for an existing customer name. If the name exists – it will record the deposit to that customer. If the customer name does not exist – it will create a
To preview sales from Quick search:
View sales deposit transactions in customer tab view
Preview deposits quickly by using the Search icon in the upper right corner.
To find deposits (sales) transactions for any customer go to Sales >> Customers.
Use filter “All plus deposits” (!Important!)
PayPal sales transactions recorded by your Sync to Accounting app will break each sale into 4 pieces:
- PayPal sale (net income)
- PayPal fee (expense)
- PayPal tax collected (liability)
- PayPal shipping (shipping income)
Net profit = The PayPal Sale Amount minus PayPal fees, and includes shipping and sales tax collected.
Each piece of the sales transaction is mapped to an account from your QuickBooks Online chart of accounts that you assign during setup.
Let’s review how a sales transaction is recorded as a deposit into QuickBooks Online. Below is how the transaction displays in your Sync to Accounting app’s main view.
The image below shows how this transaction is recorded as a deposit into QuickBooks Online:
Let’s review how a sales deposit is recorded in QuickBooks Online.
Note: The numbers by each step below correspond to the numbers in the graphic above.
- It will use the default asset account you set up in Settings for processing all PayPal transactions.
- Transaction will be posted on exact same date as it was reported in PayPal.
- Received from – the customer involved in the transaction
- Account – will use assigned default accounts from Settings (revenue, expenses for fees, liability account for tax collected and shipping income account for shipping)
- Description (A, B, C, D – see above)
- Payment method – PayPal
- Ref No. – the PayPal transaction ID will be added for each category
- Customer – this is the customer in the transaction
You can always find a reference to transaction ID in reference (Ref No.)
Transaction total = Gross sales – PayPal fee
This amount is what the data from PayPal labels as “Net”
Your actual sale amount (PayPal Sale) in this transaction example is calculated:
(PP Gross – PP Fees – Tax – Shipping) = Sale Amount
($36.10 – $1.35 – $2.17 – $3.99)
So, based on numbers above PayPal Sale = $29.99
The data provided by your Sync to Accounting app is more detailed and accurate than the data provided by PayPal itself in its free connector.