- Your first step is to decide what QuicBooks® Items will be processed by DeReToo. These are the items that need to have deferred revenue. You may need to edit QB item’s configuration, custom fields, accounts, and invoices in preparation of using DeReToo. Please fell free to contact our support desk to help you in this step.
- Decide for each item how the beginning and end dates of service will be set. Options include:
a) Invoice date + N months (this is the easy method, no custom fields need to be setup in QuickBooks®)
b) Start/End date fields (custom item fields, Start and End dates will be seen on the QuickBooks® invoice)
- Set up one or more QuickBooks® Current Liability accounts (if you do not already have them configured). When a customer prepays for a service, it will be recorded as a liability until the service is performed. You will change your item’s association from a Sales Income account to a Current Liability account. Once this is done, invoiced item revenue will post to the current liability account, and DeReToo will move it to the correct Sales Income account in monthly increments over the service contract period. Please fell free to contact our support desk to help you in this step.
- Make a backup of your QuickBooks® file before continuing.
- Set up a DeReToo company file. Browse to the Sign Up page, and create an account. You will need your password for the QuickBooks® web connector.
- In DeReToo open Settings/Edit company to set the program options.
a) Create a nick name for your company. This is useful if you have more than one company.
b) Set the company start date – DeReToo will need to look back a few months to locate all of your active deferred revenue invoices. For example, if you have invoices with a 12 month term from start to end, set the start date to 12 months ago.
c) Set the day DeReToo of the month will post to income accounts. (optional)
d) Choose item types that will be considered for deferred revenue calculations. (default is “service Items”)
e) If using the renewal invoice feature, set an offset for the renewal date. This will determine the number of days in advance to process renewal invoices.
f) Set start/end date custom fields (optional)
g) Pick one or more date formats for your start/end date fields (optional)
- Set up a QuickBooks® web-connector.
a) Install the QuickBooks® Web connector. From the Deretoo home page, save the QWC file to your desktop (Download QWC file). Note: If you are using a hosted or virtual server, then you should save the QWC file to the computer that QB is installed on.
b) Open your company in QuickBooks® as the administrator (required for setup).
c) Open Web connector by double clicking the QWC file (or from QuickBooks® menu click File/Update web services).
d) In QuickBooks Web Connector, select the Add an Application button in the lower right corner of the screen, and at the prompt select the saved QWC file and click OK.
e) QuickBooks® will open the web connector and a new window with a security certificate, asking for your permission to connect with Deretoo will appear.
f) Check the box ‘yes’, allow access even if QB is not running’ and click continue to allow the connection. Click OK to continue.
g) Note: If you do not see a column of check boxes it means that QuickBooks® already figured out the right settings to use.
h) In the application column of web connector you should see the Deretoo entry. In the password column, type in your password to Deretoo (not your QuickBooks® password!). Make sure the check box next to Deretoo is checked, and click Update Selected. Watch the progress, and once complete you can proceed to the next steps, DeReToo is communicating with QuickBooks®!
- In DeReToo, open Settings/Item Setup and choose the items to include in deferred revenue processing. Only those items enabled will be included . For each item, set the following:
a) Sales account that DeReToo will post monthly revenue
b) Invoice start/end calculation method.
c) Include for invoice renewal report?
- This completes the setup. Go to the Deretoo home page to perform monthly process steps.
a) Open QuickBooks® Web Connector which will establish a connection between DeReToo and QuickBooks®.
b) Click the Get Invoices link. This will submit an inquiry to QuickBooks® Web Connector. Observe the progress and status in the DeReToo log screen.
c) Click the With Exception link in DereToo to correct any invoices with missing start/stop dates or other exceptions. (The next time you sync, these edits will be posted back to your invoice in QuickBooks®.)
d) Click the List Invoices link. You will see all invoices DeReToo will process, listed with the customer name, amount, start & stop dates, invoice number. You can click to review the revenue schedule to see the dates and amount that will be posted for each month.
e) Click the To be Posted link to review updates to the general ledger. Click Post to submit to QuickBooks®. Observe the progress and status in the DeReToo log screen.
f) Review your QuickBooks® reports to see the effect of the posted transaction.
(Optional) Invoices For Renewal – Click Renewal invoices to view invoices that are due for renewal. Go thru the list, uncheck invoice lines you want to ignore, change amounts if needed and then Save Changes. Once you are ready, click queue invoice for posting to QuickBooks®. The invoices will be created in QuickBooks and you can review and send the invoices via email, print, etc.