cost codes Quickbooks guide sync link qbo service items Linking your LMN Cost Codes with QuickBooks Online Service Items and Classes

Before you start exporting estimates and timesheets, you need to link some basic configuration information between LMN and QuickBooks Online.  The most important is linking LMN Cost Codes with QuickBooks Online Service Items.

What does a QuickBooks Online Service Item do?  Service items link to accounts in your chart of accounts so that LMN puts the revenue, or cost, in the correct account.  When LMN exports an estimate line item, or a timesheet, those items reference a QuickBooks Online Service item which, in turn, tells QuickBooks Online what account to store the revenue (for estimates/invoices) or cost (for timesheets) information in.

Do you have a recommended list of QuickBooks Online Service Items?  Because landscape companies do a wide variety of work, every company has different needs for service items.  However in the Attachments section of this article, you will find 2 documents - 1 is a sample list of QuickBooks Chart of Accounts, and the other is a sample list of Service Items and what Chart of Accounts they link to.

 

Linking LMN Cost Codes to QuickBooks Online Service Items (mandatory)

  1. From the LMN QuickBooks Online Sync app (https://accounting.golmn.com) open the Setup menu on the left side
  2. Choose the Link Service Items option
  3. Your LMN Cost Codes show on the left.  Your QuickBooks Service Items show on the right.  For each LMN Cost Code, assign the QuickBooks Online Service item that you want it to link to.  

    Each LMN estimate is assigned to LMN Cost Codes.  These cost codes link to QuickBooks Online Service Items, which link to QuickBooks Online Chart of Accounts.  By linking LMN cost codes to QuickBooks Online service items, the revenue from the LMN estimates gets entered to the correct QuickBooks Online revenue account.

    LMN Time jobs have a Cost Code assigned to each task.  Because the LMN Cost Codes link to QuickBooks Online Service Items (which link to QuickBooks Online Chart of Accounts), the payroll costs end up getting entered in the correct account.Annotation_2020-06-04_095153.jpg
  4. It's OK if more than 1 LMN Cost Code matches to the same QuickBooks Service item, but it would be unusual to set it up that way.
  5. When you match a QuickBooks Service item, it disappears from the Unmatched Cost Codes tab and is moved to the Pending Updates tab.  
  6. When you're finished all your matching, you can review your matches by clicking the Pending Updates tab.  If you have made changes, there will be a green numbered box beside this tab indicating how many changes are pending.
  7. Click Save Settings to save your matching settings.

 

 

Linking LMN Cost Codes to QuickBooks Online Classes (OPTIONAL - only necessary for companies using Classes)

  1. Make sure your QuickBooks Classes are set to row-based transaction.  Click here to read how to do that.
  2. From the LMN QuickBooks Online Sync app open the Setup menu on the left side.  
  3. Choose the Link Classes menu option
  4. Assign each LMN Cost Code (left side) to a corresponding QuickBooks Class (right side).  It's OK and it's completely normal if more than 1 LMN Cost Code matches to the same QuickBooks Class.  Usually, you'd have multiple LMN Cost Codes (e.g. Planting, Lighting, Carpentry) all matching to one QuickBooks Class (e.g. Installation Division)

    When exporting estimates or timesheets to QuickBooks, LMN will set the QuickBooks Class based on the LMN Cost Code selected for the estimate/timesheet.  Because each LMN Service Item is matched to a QuickBooks Online Cost Code and a QuickBooks Online Class, the LMN Cost Code sets both the service item and the class in QuickBooks Online.Annotation_2020-06-04_095221.jpg
  5. When you match an LMN Cost Code to a QuickBooks Class it disappears from the Unmatched Classes tab and is moved to the Pending Updates tab.  
  6. When you're finished all your class matching, you can review your matches by clicking the Pending Updates tab.  If you have made changes, there will be a green numbered box beside this tab indicating how many changes are pending.
  7. Click Save Settings to save your matching settings.

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