Accounting Journal Entries Overview – RepairQ

RepairQ generates Journal Entries for sales, payments, COGS, inventory, and taxes payable. If your accountant has set up a Chart of Accounts (COA) for your business, you can map your RepairQ account data to your COA to automate the classification of the account events in RepairQ. This information is used to produce the Journal Entries Report and it is required for QuickBooks Online integration. Journal Entries can be exported from RepairQ and into your accounting system—QuickBooks, Xero, or other software.

This article gives an explanation of Journal Entry Classifications in RepairQ. For questions about your Chart of Accounts in your accounting software, please consult with a CPA on proper policies, procedures, and laws in your state.

Additional Resources

Types of Accounts

Customer Deposits (payments on tickets prior to the date of ticket closure)

This liability account is credited when a customer makes a payment on a ticket prior to the date of ticket closure. The payment type account is debited as described below.
On the date of ticket closure, this liability account is debited and the applicable revenue account is credited as described below.

Payment Type - Cash (Payment Method of Cash)

This asset account is debited when a cash payment is made on a ticket. If the ticket remains open on the date of payment then the customer deposits account is credited as described above, otherwise, if the ticket closes on the date of payment, the applicable revenue account is credited as described below.

Payment Type - Check (Payment Method of Check)

This asset account is debited when a check payment is made on a ticket. If the ticket remains open on the date of payment then the customer deposits account is credited as described above, otherwise, if the ticket closes on the date of payment, the applicable revenue account is credited as described below.

Payment Type - Credit Card (Payment Method of Credit Card)

This asset account is debited when a credit card payment is made on a ticket. If the ticket remains open on the date of payment then the customer deposits account is credited as described above, otherwise, if the ticket closes on the date of payment, the applicable revenue account is credited as described below.

Payment Type - Other (Payment Method of Other)

This asset account is debited when any other type of payment is made on a ticket. If the ticket remains open on the date of payment then the customer deposits account is credited as described above, otherwise, if the ticket closes on the date of payment, the applicable revenue account is credited as described below.

Payment Type - Store Credit (Payment Method of Store Credit)

This asset account is debited when a store credit payment is made on a ticket. If the ticket remains open on the date of payment then the customer deposits account is credited as described above, otherwise, if the ticket closes on the date of payment, the applicable revenue account is credited as described below.

Inventory (Inventory Asset Account)

This asset account is debited when inventory is received and credited when inventory is sold/consumed.

Inventory Added (via purchase order, trade-in, or manually)

This liability account is credited when inventory is received. The Inventory account is debited as part of this event.
This applies to inventory adjustments made on the first day an inventory item has a non-zero cost.

Inventory Adjustment (manual changes to inventory items)

This liability account is credited when the cost of an inventory item is increased after the initial receipt or debited when the cost of an inventory item is decreased after the initial receipt. This account catches all the cost adjustments typically made to correct user errors when the cost was inputted on a PO or when manually adjusting inventory. The Inventory account is debited or credited counter to the adjustment account as part of this event.
This applies to inventory adjustments made after the first day an inventory item has a non-zero cost.

Inventory Trade-in (inventory added via trade-in tickets)

This temporary asset or expense account is debited when inventory is purchased from a consumer on a trade-in ticket. This debit is balanced by an equal credit to Customer Deposits. In this same event, the "Inventory" account is equally debited, and the "Inventory Added" account is credited.
To avoid double counting the cost of a trade-in, it is generally recommended to link "Inventory Tradein" to the same account as "Inventory Added", so a trade-in event appears as one debit to "Inventory" and one credit to "Customer Deposits".

Inventory Transfer (inventory to or from another location via internal transfers)

This asset/liability account is debited at the location sending inventory and credited at the location receiving inventory.
Note, in the same transfer event, the "Inventory" asset account is, equally and oppositely, debited at the location receiving inventory and credited at the location sending inventory.
Inventory transfer is essentially a current liability (AP) at the receiving location and a current asset at the sending store (AR). You cannot split outbound/inbound transfers into separate accounts, so you must choose to post to either a current liability account or a current asset account. The journal will make the appropriate debit/credit adjustments to the account based on whether it's inbound or outbound.
If the location is an inventory warehouse that mostly sends outbound transfers, you should map Inventory Transfer to a current asset account.
If the location is a retail store that mostly receives inbound transfers, you should map Inventory Transfers to a current liability account.
If the location is a retail store that equally receives inbound and sends outbound transfers, then you could set it up either way.

PO Shipping Expense

This expense account is debited by the amount of shipping cost on a Purchase Order when it is advanced to Reconciled. A credit to the PO Shipping Payable account occurs as part of this event.

PO Shipping Payable

This liability account is credited by the amount of shipping cost on a Purchase Order when it is advanced to Reconciled. A debit to the PO Shipping Expense account occurs as part of this event.
It may be helpful to link PO Shipping Payable to the same liability account as Inventory Added described above since you will likely be paying for the entire Purchase Order (inventory + shipping) using a single payment.

PO Taxes Expense

This expense account is debited by the amount of taxes on a Purchase Order when it is advanced to Reconciled. A credit to the PO Taxes Payable account occurs as part of this event.

PO Taxes Payable

This liability account is credited by the amount of taxes on a Purchase Order when it is advanced to Reconciled. A debit to the PO Taxes Expense account occurs as part of this event.

PO Cost Adj Expense

This expense account is debited by the amount of "other cost adjustments" on a Purchase Order when it is advanced to Reconciled. A credit to the PO Cost Adj Payable account occurs as part of this event.
The "other cost adjustments" field is most commonly used for non-tax fees and other items not in the RepairQ catalog, especially with integrated purchase orders in order to capture the difference between the total order cost on the supplier website and the total PO cost in RepairQ. If there is a variance it could mean that additional products were purchased on the supplier's website that did not appear on the original PO.

PO Cost Adj Payable

This liability account is credited by the amount of "other cost adjustments" on a Purchase Order when it is advanced to Reconciled. A debit to the PO Cost Adj Expense account occurs as part of this event.

Cost of Goods Sold (consumed on tickets)

This expense account is debited to record permanent removal from inventory as sold, typically used for when an inventory item is sold and accounted on the ticket closure date. The Inventory account is credited as part of this event.

COGS, Adjustment

This liability account is credited if the cost for an inventory item increases while in the sold status or is debited if the cost for an inventory item decreases while in the sold status. Since sold is a terminal status and inventory items are no longer editable once they reach a terminal status, this account should never receive any debits or credits. The Cost of Goods Sold account is debited or credited counter to the adjustment account as part of this event.

Revenue: Sales (Taxable)

This revenue account is credited when a ticket is closed. All taxable revenue is credited to this account as part of this event.

Revenue: Sales (Non-Taxable)

This revenue account is credited when a ticket is closed. All non-taxable revenue is credited to this account as part of this event.

Sales Tax Payable (Tax Collected/Payable Amount)

This liability account is credited when a ticket is closed. The amount of sales tax that is collected is credited to this account as part of this event. When tax is remitted to the government at a later date, this account should be debited in the accounting system.

Inventory Damaged (consumed via Damaged status)

This expense account is debited to record permanent removal from inventory as damaged, typically used when a tech damages a part during installation on a repair. The Inventory account is credited as part of this event.

Inventory Damaged Adjustment

This liability account is credited if the cost for an inventory item increases while in the damaged status or is debited if the cost for an inventory item decreases while in the damaged status. Since damaged is a terminal status and inventory items are no longer editable once they reach a terminal status, this account should never receive any debits or credits. The Inventory Damaged account is debited or credited counter to the adjustment account as part of this event.

Inventory Parts (consumed via Parts Only status)

This expense account is debited to record permanent removal from inventory as parts only, typically used for devices that were purchased for parts and all usable parts have been removed leaving a scrapped phone in inventory. The Inventory account is credited as part of this event.

Inventory Parts Adjustment

This liability account is credited if the cost for an inventory item increases while in the Parts Only status or is debited if the cost for an inventory item decreases while in the Parts Only status. Since Parts Only is a terminal status and inventory items are no longer editable once they reach a terminal status, this account should never receive any debits or credits. The Inventory Parts account is debited or credited counter to the adjustment account as part of this event.

Inventory RMA Credit (consumed via RMA Credit status)

This asset account is debited to record permanent removal from inventory as RMA Credit, typically used to reconcile RMA credits due from suppliers for returned defective parts. The Inventory account is credited as part of this event.

Inventory RMA Credit Adjustment

This liability account is credited if the cost for an inventory item increases while in the RMA Credit status or is debited if the cost for an inventory item decreases while in the RMA Credit status. Since RMA Credit is a terminal status and inventory items are no longer editable once they reach a terminal status, this account should never receive any debits or credits. The Inventory RMA Credit account is debited or credited counter to the adjustment account as part of this event.

Inventory Shrinkage (consumed via Shrinkage status)

This expense account is debited to record permanent removal from inventory as shrinkage, typically used during the reconciliation of an inventory count when the physical count was short as compared to the system inventory record. The Inventory account is credited as part of this event.

Inventory Shrinkage Adjustment

This liability account is credited if the cost for an inventory item increases while in the shrinkage status or is debited if the cost for an inventory item decreases while in the shrinkage status. Since shrinkage is a terminal status and inventory items are no longer editable once they reach a terminal status, this account should never receive any debits or credits. The Inventory Shrinkage account is debited or credited counter to the adjustment account as part of this event.

Inventory Voided (consumed via Voided status)

This expense account is debited to record permanent removal from inventory as voided, typically used to reverse inventory that was added by mistake. The Inventory account is credited as part of this event.

Note, an inventory item voided on the same day it was added does not appear in the journal at all.

Inventory Voided Adjustment

This liability account is credited if the cost for an inventory item increases while in the voided status or is debited if the cost for an inventory item decreases while in the voided status. Since voided is a terminal status and inventory items are no longer editable once they reach a terminal status, this account should never receive any debits or credits. The Inventory Voided account is debited or credited counter to the adjustment account as part of this event.

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Additional Resources

Types of Accounts

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