QB Accounts and Lists – Indica Online to QBO

Application Summary #

The Indica Online to QuickBooks (QB) Online Connector pulls data from IO¹ using their API and it creates a Daily Summary Invoice, Payments, Cost of Goods Sold Journal Entry and Vendor Bills in QB.  

In regards to setup and configuration the largest question we come across is, how do you want to track Income, COGS and Inventory Assets in QB. The Connector allows you to map each Product Type in IO to a set of GL Accounts. An example of a typical setup that we see is users will create an Income and COGS Account for each Product Type used in IO but will have a Single Inventory Asset Account. The second most popular setup is to have a single Income, COGS and Asset Account. 

The remainder of this document will provide lists of GL Accounts and Items that are needed in QB prior to configuring the Connector.  

QuickBooks Setup Steps #

The following lists are what’s needed in QB. Items or Accounts that are Required will be flagged as such. 

Customer #

A customer is needed to assign to the Invoice and Payments that get Created. The Name is the only field that needs filled in and it can be any name you would like, examples could be Dispensary Sales, IO Sales, etc. 

• Customer (Required) 

GL Accounts #

Because we create an Invoice in QB, we need to have Items created but we need Accounts to assign to those items. Below is a list of the various Accounts, by Account Type, we need for the Connector. If we show a ‘sub list’ these are not exact accounts you need, but rather examples, you’ll need to create accounts that match your data. 

Bank Accounts #

The Connector will create a separate Payment transaction in QB for each Payment Method used in IO. We need a Deposit Account for each Payment Method. You may want to put Cash into Cash on Hand and ACH payments into Undeposited Funds or a ACH Pay Clearing Account, or directly into your Checking Account. The below list is not all inclusive. Create accounts for the payment methods you use in IO. 

Income Accounts #

IO has features that not all users utilize, if the Account is not flagged as Required you don’t need to create one. The Names of the Accounts do not have to match the exact name below. For any account not created we will use the Sales Offset account in its place. 

• Discounts Given (Required) for Order level discounts
• Product Returns
• Sales Offset (Required) Used for variances, typically a sales tax rounding difference
• Sales Fees Collected (Required) You’ll need an account for each fee that’s charged, an example might be a fee for paying by debit card
• Bonus Points (We don’t capture bonus points earned so this acts as a different type of  ‘discount’)
• Product Sales (Required) You can use a single account or you may want sub accounts per Product Category used in IO. Examples might be:
  • Beverage
  • Flower
  • Merch
  • Edible

Cost of Goods Sold Accounts #

You can have a single COGS Account or one Account per Product Category. We’ve also seen one account for Cannabis products and one for Non-Cannabis products.

• Cost of Goods Sold (Required) You can use a single account or you may want sub accounts per Product Category used in IO. Examples might be:
  • Beverage
  • Flower
  • Merch
  • Edible

Asset Accounts #

You can have a single Inventory Asset Account or you can create one per Product Category.

• Inventory Assets (Required) You can use a single account or you may want sub accounts per Product Category used in IO. Examples might be:
  • Beverage
  • Flower
  • Merch
  • Edible

Liability Accounts #

When it comes to Sales Tax collected, you can create a single GL Account for all taxes or any other combination you need. For example, you might create an Account for Excise Tax and a single account for all other taxes.

• Sales Tax Payable (Required) You can use a single account or you may want sub accounts per Tax Type used in IO. Examples:
  • Excise Tax
  • City Tax
  • County Tax
  • State Tax
  • Federal Tax

Items #

Because we create Invoices in QB, the GL Accounts must be assigned to an item. Below is a list of needed items separated by item type. Note that some of the items are Non-Inventory and others are Service Items.

Just like the Accounts, the names of the items do not have to match the below lists. The only fields that must be populated are the Name and the Income Account.

Non-Inventory Items #

The Non-Inventory Items are only used for the Income of the Products. This means if you have a single Income Account for your Product Sales then we only need a single item. Create an item for each Product Sales account you created above.

• Product Sales (Required)
  • Beverage Sales
  • Flower Sales
  • Merch Sales
  • Edible Sales

Service Items #

• Discounts (Required)
• Product Returns
• Sales Offset (Required)
• Sales Fee (Required if you charge Customers a fee . Create an item for each fee account you created above)
• Bonus Points
• Sales Tax (Required) Be sure to create one item per Account you setup above.

Payment Methods #

You may want to have a Payment Method to match those used by the dispensary and not just the defaults within QBO. Use the Cog to enter the Settings, click on All Lists and select the Payment Methods. Add any payment methods not in the list that you want to use. This is nothing more than a label that will be used to identify which payment is which once in QuickBooks.

1. Indica Online ↩︎