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QuickBooks Online Integration

Recurly for QuickBooks enables your billing data from Recurly to be integrated with QuickBooks Online in an efficient, reliable, and repeatable manner. Merchants can use this integration to calculate accounts receivable and bank account balances from inside of QuickBooks.

Introduction

Recurly for QuickBooks Online integrates Recurly billing data with QuickBooks Online. This integration enables the automatic transfer of information from customer accounts and plans, along with data from invoices, payments, and refunds to QuickBooks Online, improving data accuracy and streamlining your revenue accounting process.

You’ll also be able to reconcile in real-time data from customer accounts, payments, and receivables. By consolidating this data in a single solution, you’ll have a more complete view of your recurring revenue and transactions.

Setup Video

You can see instructions on setting up the QuickBooks Online integration here:

Key Integration Criteria

  • The integration only functions with QuickBooks Online, not QuickBooks Desktop.
  • The integration currently works only with the United States version of QuickBooks Online.
  • The integration will support Recurly sites in sandbox mode or production mode.
  • The integration will support QuickBooks Online sites in production mode. If you would like to test with a non-production QuickBooks Online account, we recommend you sign up for a separate trial QuickBooks account.
  • The integration is available in the Pro and Enterprise versions of Recurly.
  • The integration does not function well with multicurrency sites as QuickBooks Online and Recurly have different definitons of customers. A customer in QuickBooks Online can only have one currency, whereas a customer in Recurly can have multiple currencies.
  • You can sync multiple Recurly sites to one QuickBooks site.
  • You can only connect a single Recurly site with one QuickBooks instance; you cannot sync to multiple QuickBooks instances from one Recurly site.
  • We recommend that you disable the "Custom Transaction Numbers" function within QuickBooks as this can cause errors with invoices syncing to QuickBooks.
  • We recommend that you do not delete open credit balances on customer accounts within Recurly. This will cause orphaned credit memos in QuickBooks that can never be resolved.

Integration Overview

The integration is a one-way sync between Recurly to QuickBooks with six points of integration. Records are synced in the following sequence:

  1. Recurly Plans, Setup Fees, and Add-Ons with QuickBooks Items
  2. Recurly Accounts with QuickBooks Customers
  3. Recurly Invoices with QuickBooks Invoices
  4. Recurly Payments with QuickBooks Payments and Refunds
  5. Recurly Credits with QuickBooks Credit Memos

General Sync Behavior

When you set up the integration, you will specify a start date. Records created or updated on or after this date will be synced with QuickBooks Online.

The Recurly-QuickBooks integration will run once per hour. Each time the sync process runs, it will attempt to sync all records which have been created or updated since the last time the sync process ran.

This integration is only a one-way sync. Records created or updated in Recurly will be synced to QuickBooks. Once they are in QuickBooks, records updated within QuickBooks will not have changes synced back to Recurly.

Plans

Plans, Add-Ons, and Setup fees in Recurly are synced with Items in QuickBooks. By default, these accounts are created as Service items. Once they are in QuickBooks, you can edit the type. The plan sync works with both item hierarchy and item categories.

All Plans, Add-Ons, and Setup Fees will be synced with QuickBooks, regardless of the start date that you select in setup.

As part of the setup process, you can define an account to populate on the item records within QuickBooks. This can be either an Income account or a Liability account. We recommend you choose a Liability account (e.g. Deferred Revenue).

When items are synced with QuickBooks, they will include the default sales account that you set. Once the item is in QuickBooks, you can edit the income account. This income account will be populated on any invoice line items which reference a given item.

One way that this can work well is that if you use a deferred revenue account as the default revenue account, you can use Recurly's revenue recognition solution or a spreadsheet to calculate your recognized revenue each month.

You also have the option to attribute different products to different revenue accounts, so that when invoices are integrated your accounting will hit different accounts as you like. When the plans are imported from Recurly into QuickBooks, we need to specify one account by default. After the integration runs for the first time, you are able to specify which account you would like to be applied to which Item in QuickBooks. You can navigate to Setup > Lists > Products & Services and then choose the service item for which you would like to set the revenue account. When invoices are synced with these items, they will be booked to the account specified in this Items & Services list.

Customers

Customers will be synced from the account record type in Recurly to the customer record type in QuickBooks.

  • All Recurly accounts will be synced regardless of the Start Date that you select.
  • Accounts which are marked as inactive in Recurly before the sync process begins will not be synced to QuickBooks.
  • If an account is marked as inactive in Recurly after it has been synced to QuickBooks, we will not apply the inactive tag in QuickBooks as this will limit our ability to sync to that customer in QuickBooks in the future.
  • Because Recurly syncs the email address for customers with QuickBooks, you will have the ability to send emails to them from within QuickBooks. We recommend that you do not use both Recurly and QuickBooks to send automated email communications to your customers.
  • Billing address will be synced
  • Multiple shipping addresses will not be synced
  • Account Address will not sync (only billing address associated with Payment Information)
  • As a reminder, the integration does not function well with multicurrency sites as QuickBooks Online and Recurly have different definitions of customers. A customer in QuickBooks Online can only have one currency, whereas a customer in Recurly can have multiple currencies. To handle this, we will sync all transactions from Recurly to QuickBooks which are of the same currency as your base currency in Recurly (e.g. if your base currency is USD, we will sync all USD transactions).

Customer Naming

QuickBooks enforces uniqueness on the "Display Name" field. In Recurly's QuickBooks setup, we give you the option to select between the following fields to use as your Display Name in QuickBooks:

  • First Name + Last Name (i.e. Jeffrey Smith)
  • Account Code (unique ID in Recurly)
  • Company Name
  • Email address

When you choose one of these options on setup, we will send it to the Display Name field on the QuickBooks customer record.

We recommend that B2C companies use Account Code or First + Last Name, and B2B companies use Company Name for this feature.

NOTE that of these fields, only Account Code is required. If you choose a non-required field and create an account in Recurly in which that field is not populated, the account will not be able to sync to QuickBooks and we will display an error. For example, if you choose Email Address as your display name in QuickBooks and create an account in Recurly without an Email Address, that account will fail to create a Customer record in QuickBooks.

Merging Customers

To control for duplicate customer accounts, QuickBooks gives you the ability to merge accounts within its tool. This is a useful tool for ensuring good data integration.

We recommend that BEFORE integrating Recurly with QuickBooks that you conduct an audit of your customers in QuickBooks to ensure that there are no duplicate customer accounts. If you need to merge accounts, you can follow instructions here.

After you have integrated customer accounts from Recurly to QuickBooks, you can still use the merge function. Here are a few guidelines to follow:

  • If you have a new account that was created as part of the Recurly sync and you want to merge it with an account in QuickBooks that was manually created, we highly recommend that you merge the manually created customer INTO the automatically created customer. This will ensure that Recurly will keep the association between Recurly customer and QuickBooks account. This means that you should edit the account NOT created by Recurly to match the account that was created by Recurly.
  • If you have a significant amount of duplicate accounts in your QuickBooks instance before integrating with Recurly, please contact our support team and we can assist you in preparing to integrate.

Invoices

Invoices within QuickBooks will reference customer accounts and plans. Each invoice line item from Recurly will be synced to QuickBooks.

The individual line items will carry the revenue treatment that is applied to the plan, add-on, or setup fee for that line. For example, if an invoice contains line items for a plan, setup fee, and add-on, each will get its own attribution to revenue based on the revenue account on its Item.

And the journal entry for this invoice will appear as below:

  • We recommend that you disable the "Custom Transaction Numbers" function within QuickBooks as this can cause errors with invoices syncing to QuickBooks.

Taxes

We support the taxation of customers within Recurly, but not the taxation of Recurly customers using QuickBooks functionality. The integration will send invoices and credit memos with tax information from Recurly to QuickBooks.

  • On the initial sync, we will create an account in your chart of accounts called "Recurly Sales Tax Payable" and an item call "Recurly Sales Tax."
  • When you have an invoice with tax synced to Quickboks, Tax will be synced as a separate line item with the item of "Recurly Sales Tax" along with the description of the line from Recurly.

An invoice with tax will appear as below in Recurly and QuickBooks:

Discounts & Coupons

An invoice with coupons will appear as below in Recurly and QuickBooks:

  • Coupon discounts will be synced with the "Discount Value" section on the invoice in QuickBooks.
  • Recurly Invoice Line Items will be synced with invoice line items in QuickBooks without discount values included.
  • Fixed-amount coupons will transfer the amount to QuickBooks.
  • Percentage-based coupons will calculate the coupon amount and transfer the amount to the Discount Value section on the invoice in QuickBooks.
  • Multiple Coupons on one invoice will be summed and reflected as one total on the invoice in QuickBooks.
  • A list of coupon redemption records will not be synced with QuickBooks.
  • For more information on coupons, please visit our Recurly Coupons documentation page.

One-Time Charges and Credits

Recurly gives you the ability to create charges and credits that are not part of a subscription. Until they are invoiced, these charges or credits will not be synced to QuickBooks Online. Once they are invoiced, they will sync as invoice line items.

Once you have invoiced one-time charges and credits, they will be mapped to the same default account that you set up in Recurly (e.g. Deferred Revenue). There is currently no method to route one-time charges or credits to different accounts within QuickBooks. We recommend that if you need to map charges or credits to different accounts, that you use a Plan for them.

Transactions

Transactions from Recurly will be mapped with the payment or refund receipt object within QuickBooks. If the transaction is a payment (positive amount) it will map to the payment object, which will be associated with the invoice that the payment pays. If the transaction in Recurly is negative, it will create a refund receipt within QuickBooks. Refund receipts do not reference any other records and will be associated with the customer record to which it applies within QuickBooks.

  • Payments will be applied to the Undeposited Funds account, rather than directly to a bank account.
  • Payments within QuickBooks will reference the invoice which the transaction pays.
  • Auth and Void transactions will not be synced with QuickBooks as these do not have financial impact.
  • Refunds will be synced with the refund object in QuickBooks.
  • Refunds will be applied to the Undeposited Funds account, rather than directly to a bank account.
  • Transaction number will be written to the Customer Memo field on the transaction record.

Credits

Credits in Recurly are synced with the Credit Memo object in QuickBooks.

  • Account-level credits are not synced until they are invoiced
    *When you have an invoice with a credit line item, it will create an invoice record, CM record, and payment record to associate them in QuickBooks Online.
  • Credits which have taxes credited will be included and will subtract from your Recurly Sales Tax Payable Register.
  • Note that if you have a carryforward credit that is uninvoiced, it will sync to QuickBooks. It is possible to delete this credit in Recurly. If you do so, the deletion will not carry over to QuickBooks. You will need to also delete this record manually within QuickBooks.

Using Revenue Recognition with QuickBooks Online

As QuickBooks does not support revenue recognition functionality, we recommend that customers using QuickBooks Online should take advantage of Recurly Revenue Recognition.

For users that use accrual-based accounting, we recommend that you set up Recurly products to sync to QuickBooks using a deferred revenue account. At the end of each month, we recommend making a journal entry to recognize revenue.

*Note: This documenation is intended to provide best practice guidelines. Recurly is not an accounting firm, and the foregoing should not be construed as accounting advice. You should consult with an accountant before setting up any accounting policies or procedures.

FAQ

The following are answers to common questions about the QuickBooks Online integration:

1. Do you send subscription information to QuickBooks?

No, we only send Invoices, Credit Memos, Payments, and Refunds.

2. What are the accounting entries made by the integration?

By default:

  • Invoices debit accounts receivable and credit an account that you select under "Income Account" in the integration setup.
  • Payments debit Undeposited Funds and credit accounts receivable.
  • Credit Memos (negative invoices) debit an account that you select under "Income Account" in the integration setup and credit Accounts Receivable.
  • Refunds debit Accounts Receivable and Credit Undeposited Funds.

3. How do I manage my revenue with this integration?

While we are not accountants and cannot advise you on exactly how to handle your accounting to become compliant with GAAP or IFRS, we can suggest a process to handle revenue. We recommend that you set up the integration with a deferred revenue account. When invoices are posted to Recurly, they will transfer to QuickBooks using this deferred revenue account. You can then use Recurly Revenue Recognition (see above) or another process to calculate the amount of deferred revenue which should be recognized each month, and prepare a journal entry. This is how most of our merchants handle rev rec in QuickBooks. Again, this is not a hard and fast accounting rule, but a suggestion on process.

4. Why are payments applied to Undeposited Funds instead of a cash account?

This is done because most of our merchants have expressed that they do not want each and every payment to affect their cash account. We recommend that merchants use the "Make Deposits" functionality within QuickBooks to transfer one journal entry of payments from Undeposited Funds to Cash at the end of each month.

5. Am I able to alter the Income accounts on a product-by-product basis?

Yes! All plans, add-ons, and setup fees are transferred to QuickBooks as non-inventory items, and by default are applied the Income account you set up in the integration setup. However, you can change these accounts on an item-by-item basis.

QuickBooks Online Integration

Recurly for QuickBooks enables your billing data from Recurly to be integrated with QuickBooks Online in an efficient, reliable, and repeatable manner. Merchants can use this integration to calculate accounts receivable and bank account balances from inside of QuickBooks.