Quickbooks Integration Guide

Quickbooks Integration Guide

Integrating with Quickbooks

Introduction

This guide details the steps required to enable and configure your Khaos Control Cloud system to start exporting invoice information to and receiving payments from your Quickbooks account.

Before You Begin

There are several things you should do:
  1. Read this page and any associated documents  before  you begin, this will give you an understanding of the process required to setup Quickbooks and what you need to prepare before you start the setup.
  2. Create a Sales Delivery Nominal in your Quickbooks Account (if not already present).
    1. You must ensure a  Sales Delivery Nominal  account exists in your Quickbooks system which will later need mapping to the Sales Delivery nominal in Khaos Control Cloud. This should be of type  Income  with a detail type of Service / Fee Income .
  3. Create a Purchase Delivery Nominal in your Quickbooks Account (if not already present).
    1. You must ensure a  Purchase Delivery Nominal account exists in your Quickbooks system which will later need mapping to the Purchase Delivery nominal in Khaos Control Cloud. This should be of type  Expenses with a detail type of Shipping, Freight and Delivery .
  4. Create a Purchase Delivery stock item in your Khaos Control Cloud system.
    1. You must ensure that a stock item using stockcode  PDELIVERY exists on your Khaos Control Cloud system with a base tax rate of Standard.
  5. It should be noted that any stock item that is stock controlled in Quickbooks can not be used with this integration. If you have lots of stock items that will be affected, we advise using Rollup Transactions, discussed later in the guide.
  6. Check out the Quickbooks videos on the Knowledgebase. You can do this by searching for Quickbooks.
  7. Both Quickbooks and KCC must use the same base currency. Price Lists can be used to managed sales for customers who use different currencies.
  8. Please notify support@khaoscloud.com of your intent to integrate Quickbooks - THIS IS MANDATORY .

Initial Setup

You must log into your  Live system  when setting up and integrating your Quickbooks account.

Enabling Accounts Integration

  1. Go to the Accounts tab of [System Setup | System Values].
  2. Click Edit and enable the option for Accounts Integration (turn the toggle green).
  3. Click Save Screen.
Please Note:
The above procedure only needs to be done once and must be performed by a user with the Admin permission.

Connecting to Quickbooks

After enabling the Accounts Integration, you will need to connect to your Quickbooks account in order to complete the Setup:
  1. Open  [Accounts | Accounts Integration] .
  2. Click on the  Actions  button.
  3. Select  Connect .
    4. Please Note:
    Once this is clicked, Khaos Control Cloud will attempt to communicate with Quickbooks by opening the Quickbooks website in a separate browser tab – you may need to authorise this within your web browser.
  4. In the Quickbooks tab, allow KCC to access your account.
    1. Once authorised, You will be taken back to the Khaos Control Cloud accounts integration screen.
  5. If you now have two Khaos Control Cloud tabs open you should close the original one.

Get Nominal Accounts

Fetching the nominal account information from Quickbooks is one of the first steps you need to complete.
  1. Open  [Accounts | Accounts Integration] .
  2. Click on the  Actions  button.
  3. Select Get Nominal & Tax Accounts.
Please Note:
You will need to repeat this process each time you modify your Account Nominals in Quickbooks.

Mapping Nominal Accounts & Tax Codes

You must manually map all nominals that you intend to use within KCC by following the  steps  below:
  1. Click the  Edit  button.
  2. Select the Mapping tab.
  3. In the Nominal Defaults box:
    1. Select your default Purchase Nominal to be used when purchasing stock items.
    2. Select your default Sales Nominal to be used for sales.
    3. You do not need to populate the Prepayments box.
  4. Click  +New on the  Map your Khaos Control nominals to your Account Package nominals  grid.
    1. In the drop-down menu, select the KCC nominal to be added to grid and click OK.
    2. In the grid, click the magnifying glass next to the nominal code just added and select the Quickbooks Nominal account you wish to map it to.
  5. Repeat steps 2 & 3 for each nominal code to be mapped.
  6. Click  Save Sync Setup.
The above procedure can be viewed in this video,  How to Manually Map Nominal Accounts to Xero. The process is the same for both Quickbooks and Xero.
ALERT:
If the following error occurs when trying to syncronise with Quickbooks "A validation exception occurred Account code or ID must be specified" then the required nominal account mappings are missing within your integration configuration. Any new nominal accounts you have created in KCC must also exist in Quickbooks, and be mapped accordingly.

Mapping Delivery Nominals

In addition to mapping these nominals during the process above, it is also necessary to map the delivery stock items to the relevant nominal account within Quickbooks. For this process, we will need both a purchase invoice and a sales invoice with a delivery charge to have been issued or posted to the accounts on your KCC system.
  1. Go to the Export tab.
  2. In the This is what is pending export grid, green select the PDELIVERY and SALES DELIVERY stock items.
  3. Click Actions.
  4. Click Upload Data.
    1. It may take in excess of an hour for these new stock items to appear in your Quickbooks Products and Services list.
  5. Go to your Quickbooks Account and open your Products and Services list, or click here to go direct to this, Products and Services (Quickbooks).
  6. Open the PDELIVERY stock item.
    1. Set the Expense Account as Postage and Delivery Expense.
      1. This may be a different name in your Quickbooks Account.
    2. Leave the Inclusive of Purchase Tax disabled.
    3. Click Save and Close.
  7. Open the SALES DELIVERY stock item.
    1. Set the Income Account as Sales Delivery Income.
      1. This may be a different name in your Quickbooks Account.
    2. Leave the Inclusive of Tax disabled.
    3. Click Save and Close.
Important Notes: Following this process, it is normal for a 'Stale Object' feedback error to be presented for both the Sales and Purchase delivery stock items if an attempt to reupload them to Quickbooks is made. This is due to the items having been modified in Quickbooks. Should these items fail to export at any point following the process above they should be manually marked as exported using the steps below.
  1. Green select the item causing the feedback message.
  2. Click the orange Grid Actions button.
  3. Click Mark as Exported.

Mapping Tax Codes

The next thing to do is to map your tax rates in KCC, to their equivalents in Quickbooks.
  1. Scroll down to the bottom Map your Khaos Control tax codes to your Account Package tax code grid.
  2. Click +New.
    1. In the popup, select your KCC Tax rate.
    2. Click Continue.
  3. In the External VAT drop-down menu, select the VAT from Quickbooks this should be matched to.
  4. Set Sale (or Purchase) toggle to determine if this row is to be use for sales or purchases.
  5. Repeat steps 2 to 4 for all tax rates and for both sales and purchases.

Only Export Stock on Invoices

Quickbooks has strict limits on the number of stock items it can manage, so this option gives the ability to only export items to Quickbooks if they appear on a sales or purchase invoices. If this option is not enabled, all new stock items, as well as any modified stock items, will appear in the Export grid to be created or updated in Quickbooks.
Please Note:
This option can be used on its own or in conjunction with the Use Rollup Transactions option below.
  1. Click the  Edit  button.
  2. Click on the toggle next to  Only Export Stock on Invoices  to make it green.
  3. Click Save Sync Setup.

Multi Currency

Enabling this option will enable transactions in multiple currencies to be synced with Quickbooks. Your Quickbooks account MUST support multiple currencies before enabling this option. With this disabled we will still send the currency code for transactions in your systems base currency, by default this is GBP.
Please Note:
Currencies cannot be synchronised directly, which means that currencies must be set-up in Quickbooks and those currencies must match the ones set up in Khaos Control Cloud.
If your Quickbooks account supports this option, and you want to enable it in Khaos Control Cloud:
  1. Click the Edit button.
  2. Click on the toggle next to MultiCurrency to make it green.
  3. Click Save Sync Setup.

Use Rollup Transactions

We recommend that all Khaos Control Cloud clients use this feature. Using Rollup Transactions means that Sales and Purchase Invoices exported to Quickbooks will not detail the individual stock items, but instead group stock items and related financial information by VAT Rate. The following steps go through how to set up the rollup stock items and how to assign those rollup stock items to the different VAT rates.
Please Note:
If you have more than 14,500 stock codes you MUST use Rollup transactions as this is the Quickbooks limit.

Creating Rollup Transaction Stock Items

Non-controlled stock items must be assigned to each VAT Rate when using Rollup Transactions with an Accounts Integration. This can be done by following the steps below:
  1. Use the drop down menu next to the blue button at the top of the screen to create a New Stock Item .
  2. Click Yes I do to confirm your choice in the popup.
  3. In the Stock Code, enter an identifying code for the item (e.g. "QB_STD_20").
  4. In the Description, enter an identifying description (e.g. “20% VAT Stock Item”).
  5. Choose a Level 2 Stock Type. Khaos Control Cloud has a Miscellaneous Level 2 Stock Type when the system is first set up and we would recommend you use this.
  6. Go to the Options tab and disable the Controlled toggle (i.e. click it to turn it grey) and confirm the popup warning of the non-stock-controlled element.
  7. Click Save Stock Item.
  8. Click the Actions button and select Copy Stock Item.  This will allow you to quickly create multiple stock items based on the one you created and you will only need to change the Stockcode and Description for each.

Setting up Rollup Transactions Creating Rollup Transaction Stock Items

Now that the non-stock-controlled stock items have been setup, you can enable Rollup Transactions and assign those stock items to the individual VAT rates as required by the use of this function. To set up Rollup Transactions, you need to complete the following steps:
  1. Go to  [Accounts | Accounts Integration] .
  2. Click  Edit.
  3. Click on the toggle next to  Use Rollup Transactions  to turn it green.
  4. Scroll down to the bottom  Map your Khaos Control tax codes to your Account Package tax code  grid.
  5. For each tax rate in the grid, click the magnifying glass button on the Roll Up Stock Item Code field and select the relevant rollup stock item in the popup.
    1. You may use the same rollup stock item for both Sales & Purchases relating to the same VAT Rate.
  6. Repeat Steps 3 to 4 for sales and purchases for each tax rate.
  7. Click Save Sync Setup.

Don't Export Payments

With this option enabled, any sales order prepayments will not be sent to Quickbooks for recording and allocation. All payments must be created and allocated in Quickbooks which will then be fed back to KCC as part of the Import  synchronisation process.

Sales Other Ref Mapping

This setting allows you to specify what field is used for mapping to the Message on invoice field in Quickbooks. By default this is set to SOrder code however, there are a number of other options to choose from if you prefer. They will appear in the Message on invoice field as "This invoice's alternate reference is:"

Export Invoice Type

This drop-down menu gives users the ability to chose whether to export both Sales and Purchase invoices, or alternatively only Sales Invoices or only Purchase Invoices over to Quickbooks.

Exclude Sales Sources

This drop-down menu give users the capability to not sync sales from the specified sources. You may wish to enable this to  prevent duplicates occurring for sales sources that are directly integrated with your Quickbooks account.  In the drop-down menu click the sources you do NOT want to sync with Quickbooks and a small tick will appear to the left hand side of the description.

Assigning SP Ledger Stock Items to Tax Codes


We advise all SP Ledger entries are carried out in Quickbooks. However, it is possible to create these in Khaos Control Cloud and synchronise these to Quickbooks. You will need to assign a stock item to the relevant VAT rates in the bottom grid of the configuration screen. In our example, we have used the same non-controlled stock items for the SP Ledger Stock Items as we did for our Rollup Stock Items (above). To see how we set this up, see the section above, Creating Rollup Transaction Stock Items. To assign stock items to SP Ledger Stock Items:
  1. Go to [Accounts | Accounts Integration].
  2. Click Edit.
  3. Scroll down to the bottom Map your Khaos Control tax codes to your Account Package tax code grid where the tax codes will already be populated from the set up earlier.
    1. Each VAT rate should appear twice, once for Sales Invoices (Green ticked) and once for Purchase Invoices (unticked).
  4. Allocate an SP Ledger Stock Item for each tax code row.
    1. Use the magnifying glass button on the SP Ledger Stock Item Code field (next to the VAT Rate) you wish to allocate to, and select the relevant stock item.
      2. Please Note: 
      You can use the same stock item for the same VAT rate on both Sales & Purchases rows (e.g. The “QB_STD_20” stock item created earlier can be used for both “Standard” tax code on Sales and “Standard” tax code on purchases).
  5. Click Save Sync Setup.
  6. Check that your rollup-stock items appear in your Quickbooks Products and Services list. They will need creating via the Export grid in KCC if not present.