A common question we hear as our users consider syncing their orders to QuickBooks Online is the decision of whether to sync a Shopify order as a Sales Receipt or as an Invoice when using our WooCommerce Sync for QuickBooks Online. This setting can be changed in MyWorks Sync > Settings > Order tab.
The best answer to this is to consult your accountant on their recommendation - and/or check your existing QuickBooks Online company to see how you've been accounting for orders up to this point: whether as a sales receipt, or an invoice + payment.
However, fom a sales reporting point of view, it technically doesn't matter. Using either method, the sale will still be recorded to the same accounts in QuickBooks. However, the below information can help with deciding the best approach for you.
Do all the gateways in your Shopify store collect payment as soon as the order is placed?
- Yes. You should sync orders over to QuickBooks as Sales Receipts.
- No. You should sync orders over to QuickBooks as Invoices + Payments.
Here are the main differences between the two settings.
Orders as Sales Receipts
A Sales Receipt is an invoice + a payment all rolled into one. Therefore, syncing an order as a sales receipt will record the sale, and deposit the payment into the correct (mapped) bank account in QuickBooks Online. This is usually a typical representation of a Shopify order - where the order is placed and paid for all at once.
This is the default setting for MyWorks Sync but can be changed in our Settings.
Orders as an Invoice + Payment
An invoice in QuickBooks Online represents a sale you've made that hasn't yet been paid. The invoice is displayed in QuickBooks Online as "Open" until a payment is added to the invoice.
This approach is most helpful if some of your Shopify orders are placed but not paid. In this case, MyWorks would sync just an open invoice into Shopify.
If the Shopify order was paid, a payment for the invoice would also be synced over along with the payment to QuickBooks Online.
If the Shopify order is paid at a later date, MyWorks would sync a payment for the invoice at that point into QuickBooks Online.