This guide assumes that you have already set up your QuickBooks integration. If you haven't yet, please do that first. A guide for that can be found here

How payment orders are synced

Once QuickBooks is connected, you can sync your payment orders. Your payment orders may be internal transfers, payouts, or charges. Each of these types of payment orders will be exported as a different type of QuickBooks entity, which can then be used to close your books.

Internal Transfers

An internal transfer is a payment order where both the originating account and counterparty are your bank accounts. For example, if you had two bank accounts at SVB named Corporate Account and Operating Account, the payment order would look like:

Internal transfers are recorded in QuickBooks as Transfers. In order to be synced, both the bank accounts in Modern Treasury have to be mapped to QuickBooks accounts. Once synced, it would appear like this:

Payouts

A payout is where you send money from one of your bank accounts to a counterparty. This can be done over ACH, wire, check, or RTP. It would look like this:

Payouts are synced as Expenses in QuickBooks. Your bank account has to be synced to QuickBooks to do the sync. The counterparty does not have to be synced, but if it is not, the Payee field on the expense won't be present in QuickBooks. 

Additionally, the descriptive data you put on the payment order will be sent to QuickBooks. Here is how the data will appear on the expense:

  • Payment Date - this is the date of the transaction linked to the payment order.
  • Line Items - these map to the line items on the payment order. If there are no line items on the payment order, the description and amount will be pulled from the payment order instead.
  • Category - the category can be set on the payment order and/or the line items individually. Any categories set on a line item will override the payment order's category for that line item.
  • Memo - this field pulls data from a few fields on the payment order. It combines the internal description, statement descriptor, remittance information, and Modern Treasury URL. It also includes the name of the person who created the payment order and the timestamp for that action.
  • Reference Number - this is the first 21 characters of the payment order's ID.

Ultimately, you'll get an expense like this:

Charges
A charge is when you collect funds from a counterparty. This can be done through an ACH debit, for example. The payment order would look like this:

Charges are synced as Deposits in QuickBooks. Your bank account has to be synced to QuickBooks to do the sync. The counterparty does not have to be synced, but if it is not, the Received From field on the expense won't be present in QuickBooks. 

Additionally, the descriptive data you put on the payment order will be sent to QuickBooks. Here is how the data will appear on the expense:

  • Payment Date - this is the date of the transaction linked to the payment order.
  • Line Items - these map to the line items on the payment order. If there are no line items on the payment order, the description and amount will be pulled from the payment order instead.
  • Account - the accounting category can be set on the payment order and/or the line items individually. Any categories set on a line item will override the payment order's category for that line item.
  • Memo - this field pulls data from a few fields on the payment order. It combines the internal description, statement descriptor, remittance information, and Modern Treasury URL. It also includes the name of the person who created the payment order and the timestamp for that action.

Ultimately, you'll get a deposit like this:

How to sync payment orders

This section will explain how to sync your payment orders. There are two steps that have to happen before it is synced.

First, you have to create the payment order. While creating the payment order, you'll notice a field called Accounting Category. We recommend that you fill this out while creating the payment order. You can also enter it on each line item individually. If you don't, however, you can enter it later by editing the payment order, or while going through your pending syncs.

Second, the payment order has to be sent to the bank to be initiated. Until that happens, it is not available to be synced. The reason for this is that the payment may not happen, like if it is cancelled or pushed back.

Once each of these have happened, you can begin exporting your payment orders. They're accessible on your accounting settings page by clicking on the Review and Export button. 

On this page, you can sync your payment orders to QuickBooks, either one-by-one or in bulk. Also, if you want to make any last minute changes to your accounting categories, you can do that as well. 

If there are any payment orders that you want to skip, there is an option to do that as well.

You may see a warning on the top of the page that some payment orders cannot be synced due to missing mappings. Any payment orders that cannot be synced will have a little question mark bubble next to their action buttons. If you hover over it, you can see what is blocking it from being syncable. Or, if you click to sync, you will receive an error with the blockers.

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