If you use the QuickBooks Online integration and your bank account is also connected to QuickBooks Online through a bank feed, the integration and the bank feed can each record the same payment. We suggest setting up a clearing account so each sale is recorded once and each payout from your payment processor matches your WellnessLiving sales.
Key tips
You only need to record one bank deposit in QuickBooks Online for each payout from your payment processor, no matter how many sales it includes.
Keep your processor’s payout report handy. It shows the total and fees for each payout.
How WellnessLiving and your bank feed record payments
WellnessLiving syncs each sale to QuickBooks Online and records the payment in the account you mapped for that payment method. Your bank feed separately brings in the payout when your payment processor deposits it. If both use the same bank account, that payment appears in the account twice.
For example, a client pays $100.00 by card. WellnessLiving records $100.00 in your bank account. A few days later, your processor deposits that money and your bank feed records it again, so QuickBooks Online shows $200.00 for a $100.00 sale.
How a clearing account helps
A clearing account is a holding account in QuickBooks for payments you’ve collected that haven’t reached your bank yet. Using one keeps WellnessLiving sales and bank feed deposits in separate accounts:
WellnessLiving records each sale in your clearing account.
Your processor deposits the money into your bank account, and your bank feed brings in that deposit.
You record a bank deposit in QuickBooks that moves the money from your clearing account into your bank account and records the processor fee.
Your revenue is recorded once, when the sale happens. After each payout, your clearing account goes back down to the sales your processor hasn’t paid out yet.
Set up a clearing account
If you don’t already have an account you use for this, you can create one.
To set up a clearing account:
In QuickBooks Online, go to Chart of accounts and click New.
Under Account type, select Bank.
Under Detail type, select Cash on hand.
Note: QuickBooks doesn’t have a “Clearing” detail type. Cash on hand works well because it isn’t tied to a real bank account. Don’t connect this account to a bank feed.
Name the account. For example, “WellnessLiving Clearing”.
Leave the opening balance blank.
Click Save.
Set up an account for processor fees
If you don’t already have one, create an expense account for the fees your processor takes from each payout.
To set up a processor fees account:
In QuickBooks Online, go to Chart of accounts and click New.
Under Account type, select Expenses.
Under Detail type, select Bank charges.
Name the account. For example, “Merchant fees”.
Click Save.
Map WellnessLiving payment methods to your clearing account
After you create your clearing account, map your WellnessLiving payment methods to it so each sale is recorded there instead of in your bank account.
To map your payment methods to your clearing account:
Open the App Drawer
then click View All > Setup > Integrations > QuickBooks.
Click Manage integration.
Click Payment methods.
Click Refresh QuickBooks account list so any new accounts appear.
For each payment method, including cash and checks, select your clearing account.
Account Balance and Gift Card stay mapped to their liability accounts.
Click Save.
Note: Mapping changes take effect on your next scheduled sync. Transactions that have already synced stay in the account they were synced to.
Record a processor payout in QuickBooks Online
Each time your payment processor pays out to your bank account, record it in QuickBooks Online as a bank deposit. This moves the money out of your clearing account and records the processor fee.
To record a processor payout as a bank deposit in QuickBooks Online:
In QuickBooks Online, click New, then select Bank deposit.
Under Account, select the bank account the money was deposited into.
Set the date to the date of the deposit.
Skip the Select the payments included in this deposit section.
Under Add funds to this deposit, add a line for the payout:
For Account, select your clearing account.
For Amount, enter the payout amount before fees, taken from your processor’s payout report.
If your processor took a fee, add a second line:
For Account, select your processor fees account.
For Amount, enter the fee as a negative number.
Check that the total matches the amount deposited in your bank.
Click Save and close.
Go to Bank transactions in QuickBooks.
Find the deposit from your bank feed and click Match.
For example, your processor pays out $1,000.00 in sales, keeps $36.00 in fees, and deposits $964.00. Your first line is $1,000.00 to your clearing account. Your second line is -$36.00 to Merchant fees. The total is $964.00, which matches your bank deposit.
Check your clearing account balance
To check your clearing account balance:
In QuickBooks Online, go to Chart of accounts.
Find your clearing account and click View register.
Sales from WellnessLiving appear as increases, and your bank deposits appear as decreases. A small balance is normal because sales from the last day or two usually clear with your next payout.
FAQ: QuickBooks Online clearing accounts and bank feeds
Do I have to use a clearing account?
No. You can use any account structure that works for you and your bookkeeper. To keep each payment recorded once, just make sure your payment methods aren’t mapped to the same account your bank feed uses.
Do I need journal entries?
No. A bank deposit moves the money out of your clearing account and records the fee in one step, and it matches directly to your bank feed.
How often do I need to record a bank deposit?
Once for each payout your processor makes. If your processor pays out three times a week, you’ll record three bank deposits a week.
What about cash and checks?
Map them to your clearing account too. When you take cash or checks to the bank, your bank feed brings in that deposit. Record it with a bank deposit the same way, without a fee line. If you’d rather track cash separately, you can use a second holding account set up the same way.
What about refunds?
Refunds sync from WellnessLiving as refund receipts and post to the account mapped to the payment method the client was refunded to. With this setup, they lower your clearing account balance. If your processor took refunds out of a payout, enter the payout amount after refunds but before fees.
Why isn’t my clearing account at zero?
Usually it’s timing: your processor hasn’t paid out the most recent sales yet. If the balance doesn’t clear, check three things: the fee amounts on your bank deposits, any refunds, and any chargebacks.
What about chargebacks?
Chargebacks aren’t part of the WellnessLiving sync. Record them in QuickBooks yourself, or ask your bookkeeper.
Can WellnessLiving send one summary entry per day instead of each sale?
No. WellnessLiving syncs each sale as its own transaction, which keeps your revenue category and tax detail in QuickBooks.
I already mapped my payment methods to my bank account. What should I do?
Change your mapping using the steps in Map WellnessLiving payment methods to your clearing account. Transactions that have already synced stay in your bank account, so work with your bookkeeper to clean up any duplicates.