This lesson covers how to import royalty payments into QuickBooks as vendor bills. After royalty payment records are imported into QuickBooks you can pay these bills from QuickBooks
Royalty payments are amounts owed to royalty recipients (authors/contributors/agents).
Importing the royalty payments into QuickBooks requires the Transaction Pro software. This software is available in versions for QuickBooks Desktop and QuickBooks Online. Transaction Pro is available from www.transactionpro.com
Step 1. Preparation – Populate the Beneficiary Foreign System ID Field
Before exporting royalty payment records populate the EasyRoyalties: Data & Functions > Authors/Contributors > Accounting or External System for this Author field with the QuickBooks Vendor Account Name. This will allow QuickBooks to match each payment record to the matching vendor account.
Step 2. Filter the Payments View to Show Only Records that will be Paid.
From the royalty payments view, filter the record list to show only the payments that you want to pay.
For many organizations the two criteria for this filter will be:
- Payment type: Royalty statement
- Where payments are: Unpaid or scheduled
Step 3. Export Royalty Payment Records
After the Date & functions > Royalty payments view is filtered, select the export button in the toolbar. Then select the fields to export.
Most users will select fields for PayToName, PayTo foreign system ID, Payment for, Payment number, Net Payment ($), Net payment GL Acct, and Gross payment GL Acct.
The PayTo address fields (PayTo full name, address1, address2, city, state/region, postcode, country) can be exported if you want the TransactionPro QuickBooks import routine to update existing addresses or create new vendor accounts for new authors/agents.
Note: Map the PayTo full name field to the QuickBooks Address1 field in the field mapping screen if importing the PayTo address fields.
- PayTo foreign system ID field contains the QuickBooks Vendor Account Name.
- Payment for field is a description of what the payment is for.
- Payment number is the EasyRoyalties identification code for this payment. This number will be imported into the invoice number field in QuickBooks.
- Net Payment is the amount of the net payment owed. Use the Net Payment amount if there are no deductions or withholdings from the amount due.
- Gross payment GL Acct is the expense account name (or number) used in QuickBooks.
- Net Payment GL account is the accounts payable (or royalty payable) account name (or number) used in QuickBooks.
Note: GL Accounts for expenses (gross payment) and accounts payable (net payment) can be specified in the Transaction Pro > Field Mappings > Static Values column if they are not included in the export file.
Note: Default GL accounts can be specified in EasyRoyalties > Lists > GL Accounts. If specified, these accounts will populate the GL account fields for newly created royalty payment records.
Step 4. Import Payments into QuickBooks
To import the royalty payments into QuickBooks open the QuickBooks software. For QuickBooks Desktop, you must open QuickBooks before opening Transaction Pro.
Then open the TransactionPro software.
Select the Excel royalty payments file to import.
Specify the Excel sheet that contains the payment records.
Specify Import Type as Bill. Selecting Bill tells the software to create vendor invoices from the imported records.
Select Program Options: Options
In the Program Options > Basic tab select:
- Do not add new customers to QuickBooks
- Do not add new items to QuickBooks
- Do not add new accounts to QuickBooks.
If you do not want the import routine to update existing QuickBooks address or add new vendors (Authors/Agents) select these options.
After selecting the List Item options select Save.
Then press Next to continue to the field mapping screen.
Here you will map:
- Vendor > PayTo foreign system ID
- Transaction Date > Enter a date in the Static Value/Formula column. Many organizations enter a date for the last day of the royalty period.
- RefNumber > Payment Number
- Bill Due > Enter a date in the Static Value/Formula column. Many organizations will enter the payment due date. This is usually 30, 60, or 90 days after the royalty period end date.
- Memo > Payment for
- Expenses Account > Name of your royalty expense account in the Static Value/Formula column if the default expenses account was not specified in EasyRoyalties.
- Expenses Amount > Net payment
- Expenses Memo > Payment for
- AP Account > Name of your accounts payable account in the Static Value/Formula column if the default expenses account was not specified in EasyRoyalties.
Press Next until you come to the final step in the import process.
If the import process encounters no errors you will see the screen below. If errors were encountered you can cancel the import, correct the errors and redo the import.
Step 5. Verify Imported Balances
After importing the payment records, run a QuickBooks report: Reports > Vendors > AP Aging Summary report to verify that the imported amounts match the amounts in the source file.
You can filter the AP Aging Summary report to show only records for a specific vendor type (Royalty Recipient), invoice date and due date.
This page presents simplified instructions for importing royalty payments into QuickBooks. Your organization may need to modify these steps to meet the requirements of their business processes.