What is Auto Bookkeeping?

Auto Bookkeeping keeps QuickBooks Online up-to-date with payout activity in Resolve. This is an optional feature you can enable to save time and avoid manual data entry by automatically syncing payout records to your QuickBooks account for invoices that were added in Quickbooks.

Payouts Data will be recorded into your QuickBooks as soon as the bank automatically confirms to Resolve that the transaction was successful (typically within 2 business days).

Below is a summary of the record types that are synchronized by default, and with Auto Bookkeeping enabled.

How do I turn on Auto Bookkeeping?

Once you have connected your QuickBooks account with Resolve, you can:

  1. Enable the "Auto Bookkeeping" setting.

  2. Specify which accounts you would like to use from your QuickBooks chart of accounts. See below for descriptions.

  3. Once you save the configuration, Resolve will start writing these additional records.

Note: Resolve will begin recording transactions once you have enabled this setting. Any past transactions will not be recorded retroactively.

Resolve clearing account

This is the clearing account where payment records and refund receipts will be recorded. "Undeposited Funds" is the only option for this account at this point.

Resolve fees account

This is the expense account where fees will be recorded. We recommend you create a new account called "Resolve Fees" if you don't already have one.

Checking account

This should be the same bank account you have connected with Resolve. Typically called "Checking".

Vendor

This is used to tie the fees that we add to the deposit to a vendor. We recommend you create a new vendor called "Resolve" if you don't already have one.

How will it look in my Quickbooks Online account?

Resolve as a vendor:

The Resolve fees account in your chart of accounts:

Once you have received a payout we create the relevant transactions. In the example below we have a 90% advanced invoice so Resolve creates a payment of $90 against the invoice to represent the advance.

Resolve creates a deposit to represent the payout and tie the payments and fees to the deposit to record how the payout can be broken down into data entries.

You can then match the deposit with the payout that should show up in the banking tab under your synced bank account that you use to receive payouts from Resolve.

Note: The synced account in Quickbooks needs to be the same account you receive payouts in.

Why would I want to write these records to your QuickBooks Online account?

The main reason you would enable this setting would be to help you keep track of what Resolve is sending you within your QuickBooks Online account.

When you send invoices with Net Terms, Resolve sends daily payouts to your linked bank account. These payouts often include transactions from multiple invoices including advances, Resolve advance fees, buyer payments and refunds. Resolve details how each payout can be broken down into these transactions within your Resolve dashboard but getting that information back into your QuickBooks can be a challenge.

This feature alleviates this challenge by writing some of these records back to your QuickBooks account in an effort to reduce manual data entry and reconciliation.

How does sending payout data work?

The following example illustrates the sequence of events that occur:

Day 1: A Customer and an Invoice of $100 are created in QuickBooks. These records are created in Resolve through the QuickBooks sync.

Day 2: Customer is approved for terms with Resolve at an advance rate of 90%

Day 3: You finance the $100 invoice in the Resolve dashboard.

Day 4: Resolve sends you a payout for $90 minus the Resolve fee of $1. So the payout amount is $90 - $1 = $89.

Day 5: The payout hits your linked bank account. At this point the "Send payouts data" setting kicks in and Resolve creates these records in QuickBooks:

  • A payment for $90 against the invoice.

  • A deposit for $89 to match the payout that hit your checking account.

  • A fee of $1 to your expenses account. This fee is attached to the deposit.

What happens if I turn this setting off?

If you change your mind you can simply turn this off, at which point we stop writing records to your QuickBooks account. The default sync to keep your customers and invoices up to date in Resolve will still occur.

Will the deposit amount always match the payout amount?

In certain situations, the deposit amount will not match the payout amount that is posted in your checking account. This can make the reconciliation process harder. This can happen if:

  • The payout contains forwarded buyer payments

  • The net payout amount is negative [1]

  • The payout contains both invoices synced from QBO and added in Resolve [2]

Generally in these cases we recommend you log into the Resolve dashboard, investigate the discrepancy and create the relevant QuickBooks records to resolve the difference.

[1] This is a QuickBooks limitation. See this article for a work around.

[2] If you are using the QuickBooks sync, we advise against manually adding invoices to Resolve. You should create the invoice in QuickBooks, initiate a sync, and send the synced invoice with Net Terms.

Limitations of Send Payouts Data

Resolve will not be able to send payouts data to QuickBooks Online when the payout:

  1. Contains invoices manually added in Resolve (vs. synced from QuickBooks Online)

  2. Contains Resolve monthly SaaS fees

  3. Is negative (e.g., forwarded payments or when the refund amount is greater than than charged/paid amount)

Did this answer your question?