When a B2B invoice has been synced from A2X to QBO for the first time, a new non inventory product/service code called A2X B2B will be created. The asset account associated with the product/service will be the account chosen in the B2B settings page:
What happens in your accounting system when a B2B Order is synced:
A2X will read, and sync the information in a tagged B2B Order two times.
The first time will capture the order as part of a normal A2X settlement. The order will be grouped with other orders on the same date frequency that share the same payment method. The regular mappings, as specified in Accounts & Taxes will be used by A2X to create an settlement invoice.
The second time will be when A2X detects the A2XB2B tag has been applied in Shopify. A2X will create an individual invoice in QBO, for the tagged order. It will use the general ledger account associated with the A2X B2B product/service for every single row in the invoice.
The accounting entries that will be created are summarized below.
Please note that the Pending Payment account will offset with the A2X B2B account, which will result in the net entry of debit accounts receivable, credit various accounts associated with the order.
If the B2B order is unpaid at the time of tagging:
Posting Event | Account (DR) | Account (CR) |
First Time (A2X regular settlement creation) | Pending Payment | Various Categories (Sales, Discounts, Taxes, etc...) |
Second Time (A2X B2B Order) | Accounts Receivable | The account nominated in B2B settings (for example A2X B2B) |
Please click here (link article) for a more detailed explanation of the accounting entries and how the A2X B2B account will clear back to zero when the payment is processed by A2X.
Worked Example:
When the below Shopify Order is tagged with A2XB2B, and the mapped general ledger account is A2XB2B (type current asset):
The invoice that will be synced to QBO will be created as follows:
Please note that all rows in this invoice have been debited (or credited) to the same mapped general ledger account that is nominated in Accounts & Taxes for the A2X B2B Category.