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Syncing Katana sales orders to QuickBooks Online as invoices

Sync sales orders from Katana to QuickBooks as invoices for accurate financial tracking.

Dayvid Lorbiecke avatar
Written by Dayvid Lorbiecke
Updated today

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.

      Screenshot showing the Invoice all option for sales orders

  • 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.

      Screenshot showing the Invoice som option for a sales order

    • Select the items you wish to invoice.

      Screenshot showing the window where you choose items to partially 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.

      Screenshot showing the Invoice button when selecting multiple SOs

    • 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.

      Popup explaining a revert confirmation

  • 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.
If not, the subtotal sent to QuickBooks is after discounts are applied.


To enable discounts in QuickBooks, select Settings ⚙ and then Account and settings.

  1. Select the Sales or Invoicing tab.

  2. In the Sales form content section, select Edit ✎.

  3. Turn on the Discount setting.

  4. Select Save and then Done.

  5. Select the account for discounts in the Chart of Accounts

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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