This article explains how Link My Books handles settlements that span three or more months for QuickBooks users, covering both the current automated process and the historical manual method for older entries.
Current Process: Automated Rollover (Post-February 18, 2025)
UPDATE: Automated Rollover Support Rolled Out (February 18, 2025)
As of February 18, 2025, Link My Books has rolled out full support to automatically handle balance rollovers for all settlements, including those that span more than two months.
For New & Future Settlements: If a settlement period now spans 2, 3, or more calendar months, Link My Books automatically applies the necessary balance rollovers across all split parts. This ensures that only the final invoice (or journal entry) in the series will match the actual bank deposit, making reconciliation seamless.
For Older Affected Settlements: If you have any older settlements processed before February 18, 2025, that spanned more than two months and were not automatically rolled over, the quick fix is to rollback these settlements in Link My Books and then re-send them. The system will then apply the new, automated rollover logic.
Historical Manual Adjustment Process (For Older Settlements Pre-February 18, 2025)
This section describes the manual adjustment process that was necessary for settlements spanning more than two months before the system update on February 18, 2025. You would typically only refer to these steps if you are dealing with a very old settlement that you are unable to fix using the rollback and re-send feature.
Understanding the Problem (Historical Context): Prior to the update, if a settlement period spanned greater than two calendar months, the split-month rollover function in Link My Books didn't always work as intended. This could lead to a situation where the deposit from the sales channel wouldn't perfectly match the Link My Books entries in your accounting software, making direct bank reconciliation difficult.
In such rare historical cases, you would need to edit the QuickBooks journals to manually account for the split-month rollover.
Definitions:
"First journals": Refers to the journal entries for the initial parts of the settlement (e.g., for month 1, month 2 in a 3-month split). This includes all journal entries in the settlement series except the very last one.
"Final journal": Refers to the journal entry for the last period within the settlement's date range (e.g., for month 3 in a 3-month split).
If you get stuck at any point, please reach out to our support team. We can often assist directly, and can even do this for you if you grant temporary access to your QuickBooks account. Speak to support for more details.
Step 1: Adjust the "First Journals"
For each of the "first journals" (all journal entries in the series except the final one), you need to modify specific lines:
Locate the Lines: Find the lines in the journal that currently show as "Transfer to bank" or "Payment to Amazon" (or similar descriptions indicating the movement of funds).
Edit the Lines:
Change the Account for these lines from the bank account to your "Reserved Balances" account (or the equivalent account Link My Books uses for rollovers).
Optionally, you can change the line description to something like "Split month rollover balance" for clarity.
Ensure the Tax Rate for these modified lines is left blank or set to "No Tax / Out of Scope."
Save Changes: Save the modifications to each "first journal."
Repeat this process for all "first journals" in the settlement series.
Step 2: Adjust the "Final Journal"
Now, you'll make adjustments to the "final journal entry" in the series:
Add a New Line for Rolled Balances:
Add a new line item to this final journal.
Set the Account to your "Reserved Balances" account.
You can use a description like "Split Month Roll Over Balances."
The Amount for this new line is the sum of the amounts from the lines you just reallocated in Step 1 (the "Split month rollover balance" lines in the "first journals").
Important: If the reallocated line in a "first journal" was a debit, treat its amount as positive. If it was a credit, treat its amount as negative. Sum these amounts together.
If the total sum is a positive number (net debit rolled forward), this new line in the final journal should be a Credit of that total amount.
If the total sum is a negative number (net credit rolled forward), this new line in the final journal should be a Debit of that total amount (entered as a positive number in the debit column).
Example from original article:
Journal 1 had a
6.89 Creditreallocated.Journal 2 had a
147.47 Debitreallocated.Calculation:
-6.89 (credit) + 147.47 (debit) = +140.58.Therefore, on the final journal (Journal 3), a new line is added as a Credit of
140.58to the Reserved Balances account.
Adjust the Bank Transfer Amount:
Locate the line item in the final journal that represents the bank transfer (the deposit from the sales channel).
Edit the amount on this line. It should now be the full, actual balance of the settlement payout you received from the sales channel, accounting for the newly rolled-forward items.
Save Your Changes: Save the modifications you’ve made to the final journal.
After these manual adjustments, the final journal entry should now correctly reflect the total deposit amount and will be available to match during your bank reconciliation for that deposit.
If you have any questions about this article or feedback on how we could make it better please reach out to the support team via the blue chat icon on the bottom right of the page or via email to [email protected].