Journal Entries Created in QBO via Heartland Retail Financial Events

When the Heartland Retail and QBO integration is active, each financial event in Heartland Retail creates a real-time journal entry in QBO.

(If you haven’t already, you may want to first review: How the Heartland Retail to QuickBooks Online (QBO) Integration Works)

Financial Events That Generate Journal Entries

There are eight types of financial events in Heartland Retail that automatically post journal entries into QBO:

1. Sales Transactions: Purchases or returns processed through the POS or Sales Orders generate “Tickets.”

   • View POS tickets: Sales > Tickets

   • View Sales Order invoices: Sales > Invoices

2. Customer Deposits: Payments collected as deposits for layaways or Sales Orders create journal entries in QBO.

3. Purchase Receipts: Recording a receipt from a vendor.

   • View completed receipts: Purchasing > Receipts

4. Purchase Returns: Recording a return to a vendor.

   • View completed returns: Purchasing > Returns

5. Inventory Transfers: Recording either a shipment or receipt between locations.

   • View transfers: Inventory > Transfers

6. Inventory Adjustments: Recording changes to inventory quantities.

   • View adjustments: Inventory > Adjustments or Inventory > Counts

7. Gift Card Adjustments: Adjusting a gift card balance outside the POS.

   • View adjustments: Sales > Gift Cards

8. Cash Paid In/Out: Adding or removing cash from the drawer for expenses (e.g., postage, supplies).

   • View activity: Sales > Cash Paid In/Out

To see the sync status of all financial events, go to:
Settings > Integrations > QuickBooks Online > Financial Events Tab.
Here, you can check which events have posted to QBO and which are still pending.

Journal Entries Produced in QBO

For each of the eight financial events, Heartland Retail automatically creates a corresponding journal entry in QBO. Sharing this information with your accountant can help when setting up the integration mapping.

1a. Tickets: POS Sales

• Sale

  • Debit: Payment Type Account (sales price)

  • Credit: Item Class Sales Account (sales price)

  • Credit: Item Class Inventory On Hand (item cost)

  • Debit: Item Class COGS (item cost)

• Return

  • Credit: Payment Type Account (returned price)

  • Debit: Item Class Returns (returned price)

  • Debit: Item Class Inventory On Hand (item cost)

  • Credit: Item Class COGS (item cost)

• Taxable Sale

  • Debit: Payment Type Account (sales price + tax)

  • Credit: Item Class Sales Account (sales price)

  • Credit: Item Class Inventory On Hand (item cost)

  • Debit: Item Class COGS (item cost)

  • Credit: Tax Rule Liability (sales tax collected)

• Discounted Sale

  • Debit: Payment Type Account (net sales price)

  • Credit: Item Class Sales Account (gross sales price)

  • Debit: Item Class Markdowns (discount amount)

  • Credit: Item Class Inventory On Hand (item cost)

  • Debit: Item Class COGS (item cost)

• Gift Card Sale

  • Debit: Payment Type Account

  • Credit: Gift Card Liability Account

• Tax Override

  • Debit: Payment Type Account

  • Credit: Item Class Sales Account

  • Credit: Item Class Inventory On Hand

  • Debit: Item Class COGS

  • Credit: Tax Rule Liability

  • Debit: Tax Override Liability

1b. Tickets: Sales Order Invoices

• Debit: Payment Type Account

• Credit: Item Class Sales Account

• Credit: Shipping Method Income Account

• Credit: Item Class Inventory On Hand

• Debit: Item Class COGS

2. Customer Deposits

• Debit: Payment Type Account

• Credit: Deposit Liability Account

3. Purchase Receipts

• Debit: Item Class Inventory On Hand

• Credit: Item Class Purchases Received

4. Purchase Returns

• Credit: Item Class Inventory On Hand

• Debit: Item Class Purchases Returned

5. Inventory Transfers

• Shipment (Transfer Out)

  • Credit: Item Class Inventory On Hand

  • Debit: Item Class In-Transit Inventory

• Receipt (Transfer In)

  • Debit: Item Class Inventory On Hand

  • Credit: Item Class In-Transit Inventory

6. Inventory Adjustments

• Positive Adjustment

  • Debit: Item Class Inventory On Hand

  • Credit: Adjustment Reason Offset

• Negative Adjustment

  • Credit: Item Class Inventory On Hand

  • Debit: Adjustment Reason Offset

7. Gift Card Adjustments

• Positive Adjustment

  • Debit: Gift Card Adjustment Reason Offset

  • Credit: Gift Card Liability

• Negative Adjustment

  • Credit: Gift Card Adjustment Reason Offset

  • Debit: Gift Card Liability

8. Cash Paid In/Out

• Cash Paid Out

  • Credit: Cash Drawer Account

  • Debit: Cash Paid Reason Offset

• Cash Paid In

  • Debit: Cash Drawer Account

  • Credit: Cash Paid Reason Offset

Why This Matters

By understanding which accounts are debited and credited for each financial event, you’ll be better prepared to configure the mapping between Heartland Retail and QuickBooks Online. This setup step ensures your journal entries land in the correct QBO accounts.

Download the PDF Quick Reference guide for your convenience: