QuickBooks Online integration: Use amortization

This feature is available on Ramp Plus and Enterprise plans. This article applies to Admin and Accounting roles that manage accounting syncs between Ramp and QuickBooks Online.

Overview

Ramp Amortization lets you spread a prepaid cost across the months it covers. Instead of posting the full expense at once, Ramp syncs journal entries over time to move the amount from a prepaid asset account to an expense account in QuickBooks Online.

Prerequisites

• Your Ramp account is connected to QuickBooks Online .
• Amortization is enabled for your business in Ramp.
• You have a prepaid asset account in QuickBooks Online, and it is visible in Ramp.
• The expense account for the item is correct before you sync.
• The accounting period you want to post to is open in QuickBooks Online.

Set up amortization on a transaction

1. Open the bill, transaction, or reimbursement you want to sync.
2. In the Accounting section, review the expense coding for the item.
3. Confirm the correct expense account is selected.
4. Turn on Amortization .
5. Enter the amortization start date and end date .
6. Select the prepaid asset account you want Ramp to use.
7. If prompted, choose the amortization period shown in Ramp.

1. Save your accounting changes.
2. Sync the item to QuickBooks Online.

Ramp uses the dates and selected period to create the amortization schedule.

Expected result in QuickBooks Online

Before the sync completes, all amortized transactions are available in Accounting > Prepaids.

After the sync completes:

• The initial amount posts to the prepaid asset account, not as an expense.
• Ramp creates journal entries on schedule to move the balance from the prepaid asset account into the expense account.
• The expense account comes from the coding on the original bill, transaction, or reimbursement.

Note: Once synced, Ramp locks the amortization setup for that item. To change the schedule or posted entries, update them directly in QuickBooks Online.

Frequently asked questions

Why can't I select a prepaid account in Ramp?

Your prepaid asset account may not have synced to Ramp yet. Sync your chart of accounts in Ramp, then try again. If the account still does not appear, confirm it is set up as an asset account in QuickBooks Online.

What happens if the sync fails because the accounting period is closed?

Ramp can only post entries to an open period. Use an open accounting date, or update your closed-period settings in QuickBooks Online before you sync again. If part of the schedule already synced, correct those entries directly in QuickBooks Online.

Can I change the amortization schedule after the item syncs?

No. Once synced, Ramp locks the amortization details. Make any changes to the schedule, dates, or journal entries in QuickBooks Online.

Which account does Ramp use to recognize the expense over time?

Ramp uses the expense account coded on the original bill, transaction, or reimbursement. The journal entries move the balance from the prepaid asset account into that expense account over the schedule.

Does this workflow also apply to Intuit Enterprise Suite?

Yes. The amortization workflow is the same for Intuit Enterprise Suite.