Configuring QuickBooks^® QBXML Integration

Last reviewed: 12/21/2011
Article ID: R10911

The information in this article applies to:

• Tabs3 Billing Software Version 16, 15, 14 & 12
• PracticeMaster Version 16, 15, 14 & 12
• Intuit's^® QuickBooks Enterprise Solutions 12.0, 11.0, 10.0 & 9.0; QuickBooks Premier 2012, 2011, 2010 or 2009; or QuickBooks Pro 2012, 2011, 2010 or 2009

Summary

Tabs3 and PracticeMaster offer two types of integration with QuickBooks accounting software. KB article R10866, "Overview of QuickBooks Integration," outlines the types of integration. This article describes how to configure and implement QBXML integration in Tabs3, PracticeMaster and QuickBooks.

Configuring QBXML Integration

The following must be configured when integrating with QuickBooks using the QBXML format.

Tabs3 Configuration Procedures

• Configure Customization
• Configure Transaction Codes

PracticeMaster Configuration Procedures

• Configure Customization
• Add Integration Fields to the Transaction Code File
• Configure Transaction Codes When Not Integrated with Tabs3
• Add Integration Fields to the Client File
• Add Integration Fields to the Cost File

QuickBooks Configuration Procedures

• Verify Customer Account No, Rep and Job Type
• Class Tracking 
• Configure Employee List to Display by First Name
• Multi-user Mode
• Time Tracking (QB & PM Only)
• Define "Salary" In the QuickBooks Payroll Item List (QB & PM Only)

Configuring Tabs3 and QuickBooks to Assess Sales Tax

• Configuring Tabs3 for Assessing Sales Tax
• Configuring QuickBooks for Accessing Sales Tax

Tabs3 Configuration Procedures

Configuring QuickBooks Integration in Tabs3 Customization 

1. From the Tabs3 menu, select the Utilities menu and then select Customization.
2. On the Other Systems tab, select QBXML Format for the Type of Integration.
3. If you want the Client ID shown after the description in the QuickBooks General Journal Entry's Memo field, select the Append Client ID to QuickBooks General Journal Entry Description check box.
4. In the Company File field, specify the location of the QuickBooks Company file you want to integrate with.  The Browse button can be used to find the desired QuickBooks Company file. An example of a QuickBooks Company file is: \\server1\Program Files\Intuit\QuickBooks Premier\Jensen.qbw.  (Note: The QuickBooks Company file must be opened using the same path specified in the Company File field). To locate your company file, perform the following steps.
   1. In QuickBooks, press F2.
   2. In the File Information window, the Location field shows the path of your Company file.
   3. Enter the path from the Location field in QuickBooks for the Company File field in Tabs3.
5. Press Ctrl+S.

Note: Once QBXML integration is configured in Customization, all Tabs3/PracticeMaster clients are automatically set to integrate with QuickBooks. If you do not want a client to integrate with QuickBooks, clear the Integrate with QuickBooks check box on the Setup tab in the Tabs3/PracticeMaster Client file.

Configuring Tabs3 Transaction Codes

In order for cost and payment transactions to integrate to QuickBooks, the transaction must be saved with a transaction code (tcode) and client configured to integrate with QuickBooks. When configuring tcodes, keep the following in mind:

• Fees do not integrate with QuickBooks, therefore the QuickBooks integration fields are not available for tcodes with a Transaction Type of Fee.
• Transaction codes with a Transaction Type of Expense or Advance create Bills and Bill journal entries in QuickBooks. A default QuickBooks Debit Account can be specified for the tcode. The QuickBooks Credit Account is always the Accounts Payable account. Therefore, the QuickBooks Credit Acct field is not available.
• Payment transaction codes create general journal entries in QuickBooks. A default QuickBooks Debit Acct and QuickBooks Credit Acct can be specified for payment tcodes. (Note: Some firms will use an Undeposited Funds asset account instead of the Cash account for the QuickBooks Debit Acct when posting payments. A deposit slip is then created in QuickBooks, which posts the funds from the Undeposited Funds account to the Cash account.)
• Transaction codes with the following Type do not integrate with QuickBooks: 
  • Fee Tcodes
  • Type 4 - Description Only
  • Type 9 - Fin. Chg. Credit.

To configure cost and payment Tcodes in Tabs3

1. From the Tabs3 menu, select the File menu, then select Open | Miscellaneous.
2. Click the Tcode tab.
3. In the Tcode field, specify a tcode that you want to integrate with QuickBooks.
4. Select the Integrate with QuickBooks check box.
5. Specify a default QuickBooks Debit Account.
6. Specify a default QuickBooks Credit Account. Note: This option is only available for payments.
7. Press Ctrl+S.
8. Repeat steps 3 to 7 for all tcodes you want to integrate with QuickBooks.

PracticeMaster Configuration Procedures

Configuring QuickBooks Integration in PracticeMaster Customization

1. From the PracticeMaster menu, select the Utilities menu and then select Customization.
2. Select QBXML Format for the Type of Integration.
3. If you want the Client ID shown after the description in the QuickBooks general journal entry's Memo field, select the Append Client ID to QuickBooks General Journal Entry Description check box.
4. In the Company File field, specify the location of the QuickBooks Company file you want to integrate with.  The Browse button can be used to find the desired QuickBooks Company file. An example of a QuickBooks Company file is: \\server1\Program Files\Intuit\QuickBooks Premier\Jensen.qbw. (Note: The QuickBooks Company file must be opened using the same path specified in the Company File field.) To locate your company file, perform the following steps.
   1. In QuickBooks, press F2.
   2. In the File Information window, the Location field shows the path of your Company file.
   3. Enter the path from the Location field in QuickBooks for the Company File field in PracticeMaster.
5. Press Ctrl+S.

Adding QuickBooks Fields to the Transaction Code Form Layout

Before PracticeMaster Tcodes can be configured to integrate with QuickBooks, the QuickBooks integration fields must be added to the form layout.

To add the QuickBooks integration fields to the form layout

1. From the PracticeMaster menu, select the File menu and then select Open | All Other Files.
2. Double-click Lookup Files.
3. Double-click Billing Files.
4. Double-click the Transaction Code file.
5. From the Edit menu, select Form Designer.
6. Right-click and select the Add Field menu option.
7. In the Field Selection List, click the QB_INTEGRATION field.
8. Press the Shift key and click the QB_CR_ACCT field to highlight all three QuickBooks integration fields.
9. Click OK.
10. Move the fields to the desired positions.
11. Press the Esc key.
12. Click Yes to save the changes.

Configuring Transaction Codes to Integrate with QuickBooks

Note: When integrating with Tabs3, the Tcode file must be edited using Tabs3.

Once the QuickBooks integration fields have been added to the form layout, you must configure all tcodes you want to integrate with QuickBooks. When configuring tcodes, keep the following in mind:

• Transaction codes with a Transaction Type of Fee create Time Tracking records in QuickBooks when PracticeMaster is not integrated with Tabs3.
• Transaction codes with a Transaction Type of Expense or Advance create Bills and Bill journal entries in QuickBooks. A default QuickBooks Debit Account can be specified for the tcode. The QuickBooks Credit Account is always the Accounts Payable account. Therefore, the QuickBooks Credit Acct field is not available.
• Transaction codes with the following Type do not integrate with QuickBooks: Type 4 - Description Only, Type 6 - Progress Fee or Type 9 - Fin. Chg. Credit. PracticeMaster uses only the following Tcode Types, which do integrate with QuickBooks: Type 0 - Normal and Type 5 - Miscellaneous.

To configure tcodes to integrate with QuickBooks

1. From the PracticeMaster menu, select the File menu and then select Open | All Other Files.
2. Double-click Lookup Files.
3. Double-click Billing Files.
4. Double-click the Transaction Code file.
5. On the List tab, double-click a tcode you want to integrate with QuickBooks.
6. Select the Integrate with QuickBooks check box.
7. Specify a default QuickBooks Debit Account.
8. Press Ctrl+S.
9. Repeat steps 5 to 8 for all tcodes you want to integrate with QuickBooks.

Note: The QuickBooks integration fields will only be available if QuickBooks Integration has been enabled in PracticeMaster Customization.

Adding QuickBooks Fields to the Client File Form Layout

Once QBXML integration is configured in Customization, all clients are automatically set to integrate will QuickBooks. To prevent clients from integrating with QuickBooks, an Integrate with QuickBooks check box must be added to the Client file form layout. The Integrate with QuickBooks check box is not included in the default OEM form layout.

To add a QuickBooks integration field to the form layout

1. From the PracticeMaster menu, select the File menu and then select Open | Client.
2. From the Edit menu, select Form Designer.
3. Click the tab you want to add a QB Integration check box to (e.g., the Setup tab or the Status tab).
4. Right-click and select the Add Field menu option.
5. Double-click the QB_Integration field.
6. Move the field to the desired position.
7. Press the Esc key.
8. Click Yes to save the changes.

Once the check box has been added to the form layout, you can use the Client data entry program to clear the check box for all clients you do not want to integrate with QuickBooks.

Adding QuickBooks fields to the Cost File Form Layout

A QuickBooks Vendor field and a QuickBooks Debit Account field can be added to the Cost file form layout. These fields are not included in the default OEM form layout. These fields do not have to be added in order for costs to integrate with QuickBooks. If no QuickBooks Vendor is entered for a cost, the default of "STI-Vendor" will be used. The default QuickBooks Debit account will be the QuickBooks debit account specified for the cost tcode. If no QuickBooks DB Acct is specified, a debit entry will be made to the "STI-Expense" account.

To add the QuickBooks integration fields to the form layout

1. From the PracticeMaster menu, select the File menu and then select Open | Cost.
2. From the Edit menu, select Form Designer.
3. Right-click and select the Add Field menu option.
4. In the Field Selection List, click the QBVendor field.
5. While holding down the Shift key, click the QBAcct field to select both QuickBooks integration fields.
6. Click OK.
7. Move the fields to the desired positions.
8. Press the Esc key.
9. Click Yes to save the changes.

QuickBooks Configuration Procedures

Verify Customer Account No, Rep and Job Type

QuickBooks customers must have an Account No, Rep, and Job Type that matches their Client ID, Primary Timekeeper, and Billing Category in Tabs3. To verify that existing customers have the correct Client ID, open the Customer Center in QuickBooks and verify that the following fields match:

• The Account No field in QuickBooks must match the Client ID field in Tabs3.
• The Rep field in QuickBooks must match the Primary Reporting Timekeeper in Tabs3.
• In the QuickBooks Job record, the Job Type must match the Billing Category field in Tabs3.

Setting Up Class Tracking

Cost and fee transactions in Tabs3 and PracticeMaster are assigned "tcodes", which are equivalent to "classes" in QuickBooks. Therefore, Class Tracking must be configured in QuickBooks if you want to merge transactions from QuickBooks into Tabs3 and PracticeMaster. Once Class Tracking in enabled, a "Class" (i.e., tcode) can be assigned to a bill or time tracking record, which is required for integration.

To configure Class Tracking in QuickBooks

1. In QuickBooks, from the Edit menu, select Preferences.
2. In the Preferences window, select Accounting from the scroll box on the left.
3. Click the Company Preferences tab.
4. Select the Use class tracking check box.
5. Click OK.
6. From the Edit menu, select Preferences.
7. Select Payroll & Employees from the scroll box on the left.
8. Click the Company Preferences tab.
9. At the top of the window, for the QuickBooks Payroll Features options, select Full Payroll.
10. At the bottom of the window, for the Assign one class per option, select Earnings Item.
11. Click OK.

Configure Employee List to Display by First Name

If you want clients in Tabs3 and PracticeMaster to integrate with QuickBooks, the Employee List must be configured to display by First Name.

To configure the Employee List to Display by First Name

1. In QuickBooks, from the Edit menu select Preferences.
2. Select Payroll & Employees from the scroll box on the left.
3. Click the Company Preferences tab.
4. In the Display Employee List by section, select First Name. 
5. Click OK.

Multi-User Mode

In order for Tabs3 and PracticeMaster to access QuickBooks, QuickBooks must be running in Multi-user mode. By default, QuickBooks is configured to run in Single-user mode.

Switching to Multi-user mode

1. In QuickBooks, from the File menu, select Switch to Multi-user Mode.
2. If a "Create New Users" dialog box is displayed, click No.
3. If a message is displayed indicating that the file can now be used in Multi-user mode. Click OK.

QuickBooks Multi-user Mode Limitations

When running QuickBooks in Multi-user mode, certain activities cannot be performed in QuickBooks. If you need to perform an activity that can only be performed when QuickBooks is in Single-user mode, you must first close Tabs3 and PracticeMaster. Then, before Tabs3 and PracticeMaster and QuickBooks can integrate again, QuickBooks will need to be switched back to Multi-user mode. The following is a list of activities that need to be performed in Single-user mode. (Note: This list was provided by QuickBooks and is subject to change.)

• Backing up, condensing, converting, rebuilding, restoring, or updating the company data file.
• Changing company information, including the closing date.
• Setting up or changing preferences.
• Importing or exporting data.
• Merging, deleting, or restoring list items.
• Changing list item fields that interact with other lists.
• Signing up for QuickBooks Payroll Service.
• Printing Form 1099-MISC.
• Mapping a network drive from within QuickBooks.
• Defining custom fields.
• Linking to QuickBooks from TurboTax.
• Accountant's review activities.

Switching to single-user mode

1. In QuickBooks, from the File menu, select Switch to Single-user Mode.
2. If a message is displayed indicating that the company file cannot be closed because Tabs3 or PracticeMaster is using it, click OK. Close Tabs3 and PracticeMaster and repeat step 1.
3. A message will be displayed indicating that the file can now be used in single-user mode. Click OK.
4. Perform the desired task that requires single-user mode.
5. Before using Tabs3 or PracticeMaster again, switch back to multi-user mode.

Time Tracking

Time Tracking only needs to be configured if both of the following situations are true:

• You are integrating PracticeMaster with QuickBooks without Tabs3.
• You want to integrate fees (i.e., time tracking records).

To configure Time Tracking in QuickBooks

Note: You must be a QuickBooks Administrator to perform this task.

1. In QuickBooks, from the Edit menu, select Preferences.
2. In the Preferences window, select Time & Expenses from the scroll box on the left.
3. Click the Company Preferences tab.
4. Select Yes for the Do you Track Time option.
5. Click OK.

Defining "Salary" in QuickBooks Payroll Item List

Defining "Salary" in the QuickBooks Payroll Item List only needs to be performed:

• if you are integrating PracticeMaster with QuickBooks without Tabs3; and  
• if you want to integrate fees (i.e., time tracking records).

Note: A QuickBooks Payroll Service add-in must also be purchased and installed, or you must have manual payroll configured within the company file, to perform the following steps. To set up manual payroll, visit the QuickBooks KB ID# HOW12188.

1. In QuickBooks, from the Employees menu, select Manage Payroll Items, and then New Payroll Item. You will be asked if you would like help setting up payroll in QuickBooks. To continue with the following steps, click No.
2. Select Custom Setup and clickNext.
3. Select Wage (Hourly Wages, Annual Salary, Commission, Bonus) and click Next.
4. Select Hourly Wages and click Next.
5. Select Regular Pay and click Next.
6. Enter Salary for the name and click Next.
7. Select the desired account and click Finish.

Configuring Tabs3 and QuickBooks to Assess Sales Tax

If your firm charges sales tax and you want sales tax to integrate between Tabs3 and QuickBooks, both systems must be configured for assessing sales tax.

Configuring Tabs3 for Assessing Sales Tax

Individual QuickBooks transactions do not contain sales tax. Therefore, in order for transactions that are merged from QuickBooks to Tabs3 to include sales tax, the client and transaction code in Tabs3 must be configured to assess sales tax.

To assess sales tax in Tabs3, the following must be configured:

• Tabs3 Customization
• Clients
• Transaction Codes

Note:  Additional information regarding sales tax can be found in KB Article R10952, "Using Sales Tax in Tabs3."

Tabs3 Customization

1. In Tabs3, from the Utilities menu, select Customization.
2. Click the Rates tab.
3. In the Sales Tax section, select the check boxes you assess sales tax for.
4. Enter up to 9 different sales tax rates.
5. Press the Esc key to close Customization.
6. Click Yes to save the changes.

Tabs3 Clients

1. In Tabs3, from the File menu, select Open | Client.
2. Select the client you want to charge sales tax.
3. Click the Billing Options tab.
4. In the Sales Tax section, select the sales tax to be assessed for fees, expenses, and advances.
5. Press Ctrl+S.
6. Repeat steps 2-5 for each client you want to charge sales tax.

Note:  Multiple clients can be configured at once using the Change Client Options program.

Tabs3 Transaction Codes

1. In Tabs3, from the File menu, select Open | Miscellaneous.
2. Click the Tcode tab.
3. Select the tcode that you want to assess sales tax for.
4. Select the Charge Sales Tax check box.
5. Press Ctrl+S.
6. Repeat steps 3-5 for each transaction code you want to assess sales tax for.

Configuring QuickBooks for Assessing Sales Tax

Since sales tax is not assigned to individual Bills in QuickBooks, Tabs3 sales tax information cannot be sent to QuickBooks. However, if the client is set up for sales tax in QuickBooks, all transactions for that client are considered taxable once they are placed on a QuickBooks invoice or statement. This is true regardless of whether the Tabs3 transaction contained sales tax or not. Therefore, the following must be configured in QuickBooks in order to assess sales tax in QuickBooks:

• Sales Tax Item
• Company Preferences
• Customer

Sales Tax Item

The Sales Tax Item is set up within Company Preferences.

Company Preferences

1. In QuickBooks, from the Edit menu, select Preferences.
2. From the scroll box on the left, select Sales Tax.
3. Click the Company Preferences tab.
4. Under "Do You Charge Sales Tax?" select Yes.
5. In the "Set Up Sales Tax Item" section, configure the necessary Sales Tax Items.
6. Specify all other sales tax preferences.
7. Click OK.

QuickBooks Customer

1. From the Customers menu, select Customer Center.
2. Double-click the customer you want to assess sales tax for.
3. Click the Additional Info tab.
4. In the Sales Tax Information section, specify a Tax Code and Tax Item.
5. If a customer is sometimes exempt from sales tax, enter the customer's tax exemption ID in the Resale Number field.
6. Click OK.
7. Repeat steps 2-6 for all customers you want to assess sales tax for.

Note: When QuickBooks is configured to calculate sales tax, a Sales Tax Payable account is created in QuickBooks. If you select this account for an expense or advance transaction code in Tabs3, the error message "A/P detail line must have a vendor" or "Sales Tax detail line must have vendor" will be displayed. To avoid this message, do not select the Sales Tax Payable account when setting up transaction codes to integrate with QuickBooks.

References

• KB Article R10866 - Overview of QuickBooks Integration
• KB Article R11413 - QuickBooks IIF vs. QBXML Integration & Field Mapping
• KB Article R10945 - QuickBooks IIF vs. QBXML Integration & Field Mapping (Version 15 & Prior)
• KB Article R10917 - Technical Info Regarding QuickBooks QBXML Integration
• KB Article R10908 - Configuring QuickBooks IIF Integration
• KB Article R10952 - Using Sales Tax in Tabs3

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