1. As usual, on the Tigerpaw Accounts Receivable Information screen (the Green Lampshade), for a customer to be transferred to QuickBooks, both the ‘A/R Customer #:’ must be filled in, and the ‘Export Customer Information to Accounting:’ checkbox, must be checked. If either one of these fields is blank, the customer will not be transferred. *
2. The TP A/R Customer # becomes the QB Customer Name, while the TP Account Name becomes the QB Company Name. The A/R Customer # MUST EXACTLY match the QB Customer Name. Entries that do not match will create new customers in QB – these can be merged in QB after correcting the TP AR Customer # to prevent future occurrences.
3. In the Accounting Configuration screen, you have the option of having the AR Customer # automatically populated for new accounts. The selections are The Account Name, the Account ID (manual field), or the Account Number (TP generated sequential number), or None. By selecting None, the account will not be transferred to QuickBooks, and invoices cannot be posted. This can be used to control which accounts are moved into QuickBooks.
4. If you use a TP Bill-To address for this Account, and mark it as Primary, then that address will be transferred to QB as the Bill-To address. Otherwise, the Account’s address is transferred as the QB Bill-To address. The Account’s address is transferred to QB as the Ship-To address. Unlike previous versions, if you use a four line address in Tigerpaw, all four lines will be transferred intact.
5. If you mark a TP Contact as Primary, then the Contact’s Name and email address will be transferred, including the Prefix, First Name Middle Initial, and Last Name.
6. The following items are also transferred: Primary Phone Number, Primary Fax number, Default Invoice Terms, and your Primary Rep’s ‘Accounting Link Sales Rep ID’ from the Manager tab is transferred.

* NOTE: WTS can provide on request a free simple SQL statement that will turn on the ‘Export Customer Information to Accounting:’ checkbox for either all Accounts or a selected Account Type, such as Customer. By using this statement, and running a customer export, the current information will be transferred.

This process is set in TP by using what is called an Accounting Link. Currently, there are two links that should be considered by QB users: the QB Pro Enhanced link from TP, and the WTS QB Pro link. There are terminology differences between TP and QB but a Tax District in TP is equivalent to a Tax Item in QB, while a TP Tax Code equates to the QB Tax Group.

Link Selection
Both the Enhanced link and the WTS link perform basically the same tasks, but in a different manner from the QB general ledger standpoint. The decision as to which link to use is up to the accounting department. In order to assist with this decision, here are the differences.

Enhanced Link: This link uses the default Sales Tax Payable GL account from QuickBooks, along with the QuickBooks sales tax reporting and payments under Vendors –> Sales Tax. Reporting is available in both QB and TP.

This link requires that the Tax District from TP matches the Tax Item in QB, both in name and rate. There is no automatic synchronization of the two during setup or when a rate changes. If more than one Tax District is used on an invoice, all charges are not visible on the QB invoice view and the Invoice view does not total properly (see Page 503 of TP User Guide).

The Vendor on the Tax District in TP must match the same Vendor name on the Tax Item in QB. There is no automatic synchronization of Vendors. If a vendor in TP is also a customer, then the vendor’s name must be different than the customer’s name.

WTS QB Pro Link: Instead of the default Sales Tax Payable, this link requires new Other Current Liability accounts be created to act as holding accounts for sales taxes before they are paid. Although only one account is needed, several accounts can be utilized, one for each Taxing Authority (state). This serves to keep the funds separated, and allows for discounts to be properly accounted for. When your taxes are due, run the report from TP and write checks to each taxing authority, crediting each particular account, rather than one single account. There is no requirement for matching Vendors and Tax Items in QuickBooks.

Individual sales tax amounts are shown as line items on the QB invoice, and the invoice view totals correctly.

Sales Tax Parameters
In Tigerpaw there are two fields that are used to determine the total tax rate for a particular Account. The Tax District carries the name of the District, the percentage to be taxed, the GL account to be used for this tax, and the name of the taxing authority (vendor). This Tax District is the lowest reporting breakdown and may also contain special tiered taxation for those states that use them. The Tax Code has a unique name, consists of one or more Tax Districts, and a computed consolidated rate. The Tax Code is assigned to an Account, and is automatically transferred to each Service Order for that Account. An individual Service Order can have this assigned code changed, and the changed code will pass through to the invoice.

As an example, the State of South Carolina has a 5% rate (Tax District=SC, 5%). The county of Pickens has a local option tax of 1% (Tax District=PickensCounty, 1%). The county of Greenville does not have a local option tax. The Tax Code of South Carolina consists of only the Tax District of SC, so its total is 5%. The Tax Code of Pickens SC has both the Tax District of SC plus the Tax District of PickensCounty, so it has a consolidated rate of 6%, and reports both rates on the reports. Accounts in Greenville County carry the Tax Code of South Carolina, while the accounts in Pickens County carry the Tax Code of Pickens SC.

The names of these Districts and Codes are determined by the user, not by Tigerpaw. It is recommended that the creation of these codes be done with the reporting requirements in mind. Some states want their own codes used on the reports. The assignment of a Tax Code to a specific account is a one time determination, whereas the reporting is normally performed monthly.

It is recommended by WTS that the default TP Tax Code of {Exempt} (Null condition) never be used. Instead, create a Tax Code of Exempt that has a rate of zero percent. The difference in these two methods shows up in tax reporting, where a sale with the code of Exempt will show up in Total Sales, but the sales to {Exempt} codes do not.

Disclaimer: This document expresses the findings and opinions of Williams Technology Solutions, and does not necessarily reflect those of Tigerpaw Software, Inc. or Intuit.

GL Distribution Codes – Sales Code are Mandatory – Cost Codes are Optional.
The Sales code debits Accounts Receivable, and credits a Revenue account. If you want to split the revenues in your General Ledger by type of product sold (Telephone, Computer, Service), then each product type of should carry a different sales code. Otherwise Tigerpaw reports can be used to determine Sales by Category of item.

The Cost code normally debits your Cost of Sales account, and credits your Inventory account.

It is recommended that you create a GL Account called Inventory Adjustments In/Out. This account is to be used for both Inventory Losses (Shrinkage) and Gains, so that they offset each other.

If you want to track the amount of Discounts given to your customers, then create a code for Discounts that debits Accounts Receivable and credits a revenue account called Discounts (or similar). The amounts are all negatives, so this is the same as a reverse sale. If you don’t want to track Discounts, use the normal Sales account. You cannot track Discounts by type of sale.

Deposits and Trade-Ins are viewed as forms of payments, and not reductions in the sale amount (that would be a discount). Codes for deposits and trade-ins should credit liability accounts for un-applied payments.
After the invoice has been imported, you should apply the payment to the invoice directly in your accounting system, debiting the account instead of cash.

One alternative is to just not use GL Codes for these entries in Tigerpaw and handle them solely within the accounting system. You still enter the amount on the Tigerpaw order to have them print on the invoice but without any GL Codes defined, nothing will go over and you can control it all on the other side. For example, your customer gives you a $25 deposit on a $100 sale. The invoice will indicate the $100 sale, and the $25 deposit, with $75 due. However, the full $100 is transferred to Accounts Receivable, to be offset by the $25 already received.

Another method used is to issue a Credit Memo to the Customer when the deposit is received. This causes his AR to go negative, awaiting the invoice. This is OK if the time span doesn’t go beyond your taxation period. Some people use this method, and move cash around at tax time to show the liability instead of the asset.

Purchase Order Receipts GL Code: This code comes into play when the items on a Purchase Order are received from the vendor. Since we do not have the vendor’s invoice at the time of receipt, we cannot apply the cost amount to Accounts Payable.

So we have two basic options to handle the PO costs of the items received:

1. Move the cost received into a holding account and wait for the vendors invoice to clear the holding account. In this option we use a GL Receipts code in Tigerpaw to debit the Inventory account (asset), and credit an Other Liability account (such as AP Clearing or Un-invoiced Receipts) when the PO item is received. When the vendor’s invoice is received, it is entered to credit the Other Liability account, and debit Accounts Payable. This GL Receipts Code is entered on the Accounting Interface screen, where it is transferred to new Price Book Items (changeable at the item level). It is also transferred to the PO item detail screen (changeable for this PO only).
2. Don’t move any cost at the time of the receipt, and handle the cost in QuickBooks alone. In this option, the GL Receipts code is left blank on the Accounting Interface screen, and the Price Book item level. Since there is no code entered, the PO item detail has no GL Receipts code. When the PO item receipt is made, the quantity goes into Tigerpaw inventory just as above, but NO COSTS are transferred. When the vendor’s invoice is received, the Inventory account (asset) is debited and Accounts Payable is credited.

Using option two removes one balance account so that it does not have to be maintained and reconciled. The ‘real’ inventory amount would be understated by goods received, but where you have not entered the vendor’s invoice. Current experiences with speed of invoice deliveries keeps this number to such a low amount, that it is not significant.

Disclaimer: This document expresses the findings and recommendations of Williams Technology Solutions and it is not a statement from Tigerpaw Software nor Intuit.