By the end of this article, you'll know how to configure a cancellation view, structure it for your accounting system, map it to your Chart of Accounts, and test before going live.
What Is the Cancellation Journal Entry?
The Cancellation journal entry reduces or reverses deferred revenue that was booked for orders that will never be fulfilled. These are orders that were canceled at some point in your order system (e.g., Amazon, Shopify).
There are two scenarios captured in this entry:
Scenario | Description |
Not Refunded | The order was canceled, but no cash was exchanged between you and the customer |
Refunded | The order was canceled and cash has already been exchanged (refund issued) |
In both cases, the deferred revenue balance needs to be reduced so it isn't overstated when orders are fulfilled.
Step 1: Design Your Cancellation View in the Interactive Explorer
Before creating a template, start by designing your journal entry view in the Interactive Explorer. Here, you can apply filters, select a date range, choose your groupings, confirm the data structure, and make sure everything looks exactly how you want it.
Select the Journal Entry Type
Choose Cancellations as your journal entry type.
Select Your Date Range
Choose the reporting period you want to review. For example, the month of January.
Choose Your Grouping
The grouping options for cancellations are the same as the Orders template:
Grouping | What It Shows |
Order System | Broken out by platform (e.g., Amazon vs. Shopify) |
Order System Account | Broken out by individual store or seller account |
Channel | Broken out by sales channel |
Location | Broken out by fulfillment location |
Apply Filters
Use filters to narrow down the cancellation data. For example, you may want a template that only shows Amazon cancellations.
Each filter supports "is" and "is not" logic so you can include or exclude specific values.
Step 2: Create the Template
Once you've confirmed the view looks correct in the Interactive Explorer, navigate to the Templates page and click Create Template.
Fill In the Template Details (Illustrative Example)
Field | Example |
Template Name | Cancellations - Amazon |
Journal Entry Type | Cancellations |
Use Financial Statement Currency | Toggle on (e.g., USD) |
Group By | Order System Account |
Filters | Order System Account = Amazon |
Step 3: QuickBooks Automation Settings
If you're a QuickBooks customer, configure the booking settings:
Setting | Description |
Interval | Daily — Blue Onion pushes cancellation journal entries to QuickBooks every day |
Adjustment Cadence | Choose how often Blue Onion posts adjusting journal entries: daily, weekly, or monthly |
Push Start Date | The date Blue Onion begins automatically pushing entries. Set to a future date (e.g., May 1st) if you want to test first |
Once all fields are configured, click Create Template.
Step 4: Map to Your Chart of Accounts
After creating the template, you'll see it listed on your Templates page with four icons:
Icon | Function |
1st — Edit | View or modify the template's filters and structure |
2nd — Manual Push | Manually push a journal entry into QuickBooks for testing |
3rd — Mappings | Map line items to your Chart of Accounts |
4th — Disable | Temporarily disable the template |
Click the Mappings icon (3rd) to view all line items in the cancellation journal entry. Select the appropriate GL account for each line item, then save your mappings.
Step 5: Test Before Going Live
Before enabling automatic pushes, use the Manual Push icon (2nd) to test:
Click the Preview button to review the journal entry that will be posted — this does not push anything.
Click the Push to GL button to actually push the entry into QuickBooks.
Select the point in time (data as of) and the date range you want to push.
Important: If you select a multi-day range, Blue Onion will push one individual journal entry per day — not one aggregated entry for the entire range.
Once you're ready, click the blue Push button to send the entries to QuickBooks.
Viewing Your Templates
Once your template is created, you can review it by going to the Explore section and switching from Interactive View to Template View. This shows you all the details of the journal entry templates you've created — and this is ultimately what Blue Onion will post directly into QuickBooks.
You also have the option to Export the journal entry and import it directly into your accounting system if you prefer a manual workflow.
Managing Your Templates
Disable a Template
If you need to pause or restructure a template, click the Disable icon. You can re-enable it at any time.
Filter by Status
Use the status filter on the Templates page to quickly view which templates are Active vs. Disabled.
Summary
To set up your Cancellation journal entry template:
Design your cancellation view in the Interactive Explorer with the right groupings and filters
Create the template with a clear name and configuration
Configure automation if you're a QuickBooks customer
Map all line items to your Chart of Accounts
Test by previewing and manually pushing before going live
Review in Template View to confirm everything looks correct
Have questions? Reach out to our Customer Support team for assistance.