Accounting Journal Entries - Setup Accounts

This feature is currently testing in an open Beta.

Available with RepairQ 1.13. Prior to connecting your chart of accounts to RepairQ, make sure you have your chart of accounts set up in your accounting software. Make sure to consult with a CPA on the proper policies, procedures, and laws in your state.

This article will walk you through how to connect your chart of accounts to each individual piece of data within RepairQ. Only admin and accountant-level users will be able to make changes.

Click here for an article on how to export the Journal Entries report.

Note: if you are using the Quickbooks Online integration, it only allows for the transmission of data into asset and liability accounts. Quickbooks Online requires a Vendor or Customer for these accounts, and we are not able to send over that data at this time. If you have A/R and A/P accounts, you will need to create duplicates of them, and mark them as assets or liabilities in order for the data to come through properly. If you attempt to link a RepairQ account with an A/R or A/P designated account in QBO, the integration will not function.

 

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 (cash payment method type)
    • 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 (check payment method type)
    • 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 (credit card payment method type)
    • 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 - Store Credit (store credit payment method type)
    • 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.
  • Payment Type - Other (other payment method type)
    • 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.
  • Inventory
    • 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.
  • Inventory Adjustment (manual changes to inventory items)
    • This liability account is credited when the cost of an inventory item is increased after initial receipt or debited when the cost of an inventory item is decreased after initial receipt. This account catches all the cost adjustments typically made to correct user errors when 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.
  • Inventory Tradein (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 "Inventory Added" 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 added or removed 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 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 install 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 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.

 

We are adding new accounts often, so this list may not always be up-to-date.

 

Setup Default Accounts

You can assign default account classification for your chart of accounts in RepairQ. We recommend setting up the default accounts first. If you need a specific classification for Item Types, Catalog Items, Locations, or Payment Methods, you can handle that afterward.

  • Navigate to Company Settings-->Accounting
    Screen_Shot_2018-04-23_at_4.30.03_PM.png
  • Set the account name/identifier (depending on your accounting system) for each of the account types.
    Screen_Shot_2018-04-24_at_10.11.03_AM.png

Advanced Account Classification

You can classify accounting events in greater detail in a number of places: Item Types, Catalog Items, Payment Methods, and Location Settings.

  • Item Types
    • There may be times when you want to assign item types to their own unique account
    • Navigate to Company Settings-->Catalog-->Item Types.
    • Edit the Item Type you wish to connect to a certain account, and enter that specific account name into the appropriate box.
      Screen_Shot_2018-04-24_at_10.13.24_AM.png

  • Catalog Items
    • There may be times when you want to assign specific catalog items to their own unique account. You can assign an account to a specific catalog item.
    • Navigate to the catalog item you wish you edit.
    • Scroll down towards the bottom and enter the specific account name(s) into their appropriate boxes.
      Screen_Shot_2017-04-26_at_3.57.21_PM.png

  • Locations
    • If your company has multiple locations and you wish to manage the "Sales Tax Payable" and "Customer Deposit" accounts separately, you can do so within the Location settings.
    • Navigate to Company Settings-->Account-->Locations and edit the location you wish to customize.
      Screen_Shot_2017-04-26_at_4.33.39_PM.png
    • Scroll down and enter the specific account name(s) into their appropriate boxes.
      Screen_Shot_2017-04-26_at_4.33.57_PM.png

  • Payment Methods
    • If you have a payment method you need to associate with a specific account, you can do so under the payment method settings.
    • Navigate to Company Settings-->Payments-->Payment Methods and edit the method you wish to customize.
      Screen_Shot_2017-04-26_at_4.33.39_PM.png
    • Enter the specific Payments Account name into its appropriate box.
      Screen_Shot_2017-04-26_at_4.40.22_PM.png

Click here for a walkthrough on how to pull the Journal Entries report.

Have more questions? Submit a request

0 Comments

Please sign in to leave a comment.