Use QuickBooks for your Financial Reporting and Party Center Software for customer, product, and detail daily reporting. Though the Easy transfer of information requires some upfront planning, The two key components that make this easy are 'Product Categories' in Party Center Software and 'Items' in QuickBooks. Think of product categories as subtotals that you want to transfer to QuickBooks. There is no need to transfer product or customer-level data to QuickBooks. You can find out everything you need to know about products and customers in Party Center Software—don’t clog up your financials with information that is readily available somewhere else. If you follow the steps below, it will only take minutes to transfer your Party Center Software financial data to QuickBooks.
Party Center Software Setup - Products And Categories
Create Product Categories in Party Center Software that represent the level of detail you want to see in QuickBooks
Map your products into the product categories
Don’t put taxable and non-taxable products into the same category. If you have different tax rates for different products put them in separate categories - only 1 tax rate per category!
Transferring Your Data
When your ready to transfer data to Quickbooks run the Product and Category Accrual Report. This summarizes the sales we want to post to QuickBooks. Make sure you run the report by Category on an accrual basis even if you’re a cash-based business. We’ll show you how to adjust the accrual sales to a cash posting later in this article (see Bank Deposit section).Run the report by category and include all order types.
If you don’t make daily deposits, run the report for the time period you need to post.
Closeout Summary Report
To make your QuickBooks posting you’ll also need to run the following reports for the same time period. Closeout/Summary Report shows us the amount of money we can put in the bank today (cash and checks) and the amount that will post in a couple of days (credit cards).
Liability Analysis Report
Liability Analysis Report - the change in the liability tells what we received today for future events (deposits) or deposits we can release because they were in today’s sales.
Quickbooks Sales Summary
To use the sales summary in QuickBooks, you’ll need to set up items. In QuickBooks go to the list-menu and create service items that correspond to the categories from Party Center Software. Make sure you set the rate at $0, set up and select the correct tax code and a revenue account
Enter the net line items from the Product and Category Accrual Report into the QuickBooks Sales Receipt. QuickBooks will calculate sales tax based upon the tax rate and code you attached to the item and the total from the QB Sales Receipt will match the Grand Gross Total on the Sales by Category Report. Tips are not part of the daily sales totals— we’ll deal with tips when we make the deposit.
In QuickBooks select 'Make Deposits" from the 'Banking Menu'. Select the Sales receipt and when the deposit window opens use the information from the Party Center Liability Analysis Report and Closeout Report/Summary to adjust the deposit to the cash deposited. (This is how we convert from Accrual to Cash Accounting)
Adjusting Deposit To Cash Basis
Enter the Credit Card total from the daily cash summary as a negative number. I use an account called credit card receivable. This is a holding account to reflect that the money is due from the credit card processor and will be deposited into the bank account in a couple of days. We do this because the credit card sales are included in the daily totals but there is no corresponding cash to deposit today. Use the Party Center Liability Analysis Report to determine the change in deposit liabilities. If the net change is a decrease, in our example the liability decreased by $50 (570-520), then enter a negative amount to the deposit liability account in QuickBooks. If the net change is an increase, enter a positive number to the deposit liability account. If you have any tips on the Product and Category Accrual Report, you’ll need to add them in since they weren’t included in the Daily total but we received the money today. Any difference between the deposit total so far and your bank deposit represents a cash drawer over/short. I recommend recording it to a separate QuickBooks account and if it doesn’t accumulate to a big number don’t worry about it.
Note that sales tax calculated in QuickBooks matches sales tax calculated in Party Center. Setting up Sales tax in QuickBooks and allowing QB to compute sales tax when you enter your sales receipts lets you use QuickBooks to pay your sales tax when due. Use the pay sales tax feature from the Vendor Menu in QuickBooks when it’s time to make your sales tax payments. It’s always preferable to use the financial system to pay sales tax—makes auditors more comfortable.
CREDIT CARD PAYMENTS
In a couple of days, when the payments are deposited in your bank account by the credit card processor, record a deposit to your checking account in QuickBooks using the credit card receivable account. This will increase your cash balance and relieve the credit card receivable.
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