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Nomadhome
May 20, 2020
Question

POS Clearing Account and Bank Account

  • May 20, 2020
  • 1 reply
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Hello

I recently started using QBO and it connected to my retail store POS. All sales transaction from my POS are posted nightly to my QBO as a journal entry.  I notice that the cash component of the transactions is getting posted to POS Clearing on the Balance Sheet. What is the proper way to deal with this account?  My bank cash account is also connected to QBO - and nightly transactions post to my QBO cash account.  Therefore I am double counting my cash - once in the POS Clearing Account and Again in Cash.  

I noticed that some of my bank transactions offer me the option to match to a POS Clearing Account transaction - but not all.    Why are not all transaction populating a match?

 

1. How do you properly account for POS Clearing?

2. Do you manually move transaction from POS Clearing to cash?

3. Why do not all bank transactions find a matching POS clearing account transactions so I can avoid double booking?

4. Can I change the deposit account on my POS transactions so they are automatically deposited to bank and apposed to POS Clearing?

4. IS there a reconciliation I can run between POS Clearing Account and Cash so I can move and reconcile bulk transactions?

5. Any help, advice or articles about POS Clearing would be very helpful

 

Thanks

Melinda

 

1 reply

AddieC
AddieC
May 20, 2020

Hi Nomadhome, 


The great thing about using a cloud-based program is that you have the option to sync your account with tons of neat third-party apps, like a Point of Sale (POS) system. I know how important it is for your transactions to be uploaded into QBO, and for the entries to be recorded only once. I'd be happy to explain what may be happening here and shed some light on your questions. 

 

Without being clear as to which POS system/integrated app you're using, it's hard to explain what exactly is happening via those journal entries. Based on what you've described, it sounds like you're seeing duplicate transactions as you have two separate modules generating a record of your sales transactions. First it's automatically uploaded through your synced app (POS), then it's automatically uploaded through the bank feed. This is going to double-record your sales resulting in duplicate transactions. 

 

The POS Clearing account is something that you've set up on your end, as I'm not seeing it in the Test Drive QBO account. This may have been auto-generated from your POS app. If you're unsure how to handle amounts in this account, I'd recommend reaching out to your accountant for clarification. They're the best equipped to answer your accounting questions. 

If you're not yet connected to an accountant, you can find one in your area who is certified in QBO here: Find a ProAdvisor.

 

If you need to move transactions from one account to another, this is also something that an accountant user can do on their end. They have access to a special tool needed to reclassify transactions (i.e. move them from one account in your GL to another). Otherwise, this will have to be done one-by-one manually by editing the transaction itself. 

 

In regards to matching your bank transactions with records in QBO, this depends on how your account has been set up and what's appearing there. There's many variables as to what's causing some to find a match, and others not. Here's more information about the "Match" tool in the bank feed: Categorize and match online bank transactions in QuickBooks Online.

 

If you need to adjust the account your POS transactions post to, this is likely a setting on the side of the third-party app that will need adjusting. I'd recommend touching base with their support team if you need help with that. 

 

Your bank reconciliations are done within the Banking page, and will be based on what's been automatically uploaded via your online banking website. Here's more information about Reconciliation in QuickBooks Online: Reconcile an account in QuickBooks Online.

 

Since QBO doesn't come with it's own POS system, there's few resources I can share in regards to how this works with the program. Depending on the POS system you're using, they'll likely have further information to share. 

 

I hope this helps to answer some of your questions. I realize there may be a few follow-up questions you may wish to ask, or perhaps I've not fully answered your initial ones. If that's the case, I'd encourage you to reach out to our tech support team from here. It sounds like your account has a very specific setup along with third-party app integrations, which will make it difficult to assess the situation fully in this environment. 

Enjoy the rest of your day!

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