Integrating Katana with QuickBooks Online streamlines your invoicing process by allowing sales orders (SOs) from Katana to be synced as invoices in QuickBooks. This ensures accurate financial tracking and efficient accounting workflows.
Invoicing options
Note: The value of transactions will be recorded on the revenue account chosen in QuickBooks configure page (if you mapped to multiple revenue accounts, then it will be by item category in Katana).
1. Full invoicing
Process:
Navigate to the Sell screen in Katana.
Locate the desired SO and click on the Invoice column.
Select Invoice all to create a corresponding invoice in QuickBooks.
Outcome:
The invoice is generated in QuickBooks, and the SO's Invoice status in Katana updates to Invoiced.
The transaction value is recorded in the revenue account specified in the QuickBooks configuration page.
2. Partial Invoicing
Eligibility:
Available for SOs with items marked as Packed or Delivered.
Process:
Go the Sell screen or open an SO card.
Click on Invoice some... to view packed and delivered items.
Select the items you wish to invoice.
Choose to create a single invoice for all selected items or separate invoices for each.
Important considerations:
Items not yet shipped cannot be invoiced partially.
Once an SO is partially invoiced, you cannot create a single invoice for the entire order.
Packed and Delivered sections of an SO can be separately invoiced.
If shipping fees are included in the configuration, they will only appear on the first partial invoice. Subsequent invoices will not automatically include shipping fees.
3. Bulk Invoicing
Process:
In the Sell screen, select multiple SOs you wish to invoice.
Click on Invoice above the table to generate individual invoices in QuickBooks for each selected SO.
A pop-up will display the progress.
Once complete, the invoice status will update to Invoiced.
Note: This action creates separate invoices for each SO; it does not consolidate them into a single invoice.
Reverting invoices and handling credit memos
Reverting deliveries:
If a delivered section of an SO is reverted in Katana, a credit memo is automatically created in QuickBooks to reverse the corresponding invoice.
Deleting invoices:
To revert an entire invoice, you must delete it directly in QuickBooks. This action will update the SO's invoice status in Katana accordingly.
Note: It may take up to 15 minutes for the status change to reflect in Katana.
Invoice status indicators in Katana
Not invoiced: Grey status indicating no invoice has been created.
Partially invoiced: Yellow status indicating some items have been invoiced.
Invoiced: Green status indicating all items have been invoiced.
If invoice payment status syncing is enabled in the QuickBooks integration settings, additional statuses such as Paid, Partially Paid, or Unpaid will be displayed.
Bills as an inventory asset
If you're sending bills as inventory assets, a journal entry to decrease the inventory balance and increase the COGS expense account (which can be specified by category) is sent to QuickBooks when an invoiced SO is delivered. If a delivered SO is invoiced, the journal entry is sent to QuickBooks with the invoice.
When invoicing the whole SO, a journal entry for inventory is sent to QuickBooks when the SO is fully delivered. With partial invoicing, the journal entry works in line with invoicing - the journal entry is sent for the invoiced delivery, not for the whole SO.
Note: There can be a delay (up to 10 minutes) in sending entries.
Cost of goods sold (COGS)
If you enabled sending COGS in the QuickBooks configuration, a journal entry for the COGS is sent to QuickBooks if an SO is fully delivered.
This means that if an invoice is created for an SO in a Delivered status, a journal entry that credits the inventory account and debits the COGS account (which can be specified by category) is sent to QuickBooks immediately after the invoice.
If an invoice is created for an SO that is not delivered in full, this transaction is only pushed to QuickBooks when the SO's status is Delivered. Read more.
Data mapping between Katana and QuickBooks Online
Understanding how data fields sync between Katana and QuickBooks ensures accurate record-keeping:
Katana field | QuickBooks Online field | Notes |
Sales order # | Memo / Invoice number | The SO number from Katana is added to the Memo field in QuickBooks. If custom transaction numbers are enabled in QuickBooks, the SO number is also used as the Invoice Number. Duplicate invoice numbers are not allowed in QuickBooks. |
Customer | Customer | Matching is based on email. If no match is found, Katana attempts to match using a hidden ID or customer name. New customers are automatically created in QuickBooks if they don't exist. |
Bill to | Billing address | Address details are matched on the invoice. QuickBooks customer address is not updated. |
Ship to | Shipping to | Address details are matched on the invoice. QuickBooks customer address is not updated. |
Created date | Invoice date | For Not shipped or Partially packed/delivered SOs, the created date in Katana is used as the invoice date in QuickBooks. |
Picked date | Invoice date | For Packed or Delivered SOs, the picked date in Katana is used as the invoice date in QuickBooks. |
Payment terms | Payment terms | Payment terms are set in QuickBooks based on its configurations, as Katana does not manage payment terms. |
Delivery deadline | — | — |
— | Payment term | Payment term data doesn't exist in Katana. Customer payment terms are added to the invoice in QuickBooks automatically. If a new customer is created in QuickBooks, default QuickBooks payment terms are applied. |
Line item | Line item | SO line items from Katana are added as invoice lines in QuickBooks. Products are matched based on SKU. Products that do not exist in QuickBooks are created automatically. Existing product values are not overwritten in QuickBooks when products are matched. |
Quantity | Quantity | Quantity details are synced to QuickBooks. |
Price per unit | Rate | Unit price details are synced to QuickBooks. |
Tax % | Tax rate | Tax rates are assigned in QuickBooks based on the tax rate mapping defined during the initial integration setup. |
Discount | Discount | If discounts are enabled in QuickBooks, the total discount applied to an SO is sent to QuickBooks. If not enabled, the subtotal sent to QuickBooks is after discounts are applied. |
Currency | Currency | Standard and higher plans only. If your business operates in multiple currencies, Katana will include the currency of the order when creating invoices in QuickBooks. |
Discount | Discount | If discounts are enabled in QuickBooks Online, the total discount applied to a SO is sent to QuickBooks.
|
Shipping fees | Shipping line item | If configured, shipping fees from Katana are included in the QuickBooks invoice. For partial invoices, shipping fees are only included in the first invoice. Subsequent invoices will not include shipping fees automatically. |
Cost of Goods Sold | Journal entry | If enabled, a journal entry for the COGS is sent to QuickBooks when an SO is fully delivered. This entry credits the inventory account and debits the COGS account specified during the integration setup. For partial invoicing, the journal entry is sent for the invoiced delivery, not for the whole SO. |
Note: All invoices created in QBO through this integration are marked as "Tax Exclusive."
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