QuickBooks Online & ERPAG (Manufacturing)
Expand QuickBooks Online and manage advanced inventory with manufacturing. Explode complex Bill of Materials and order missing items using automate supply chain management
QuickBooks Online (QBO) is Intuit’s cloud-based accounting software. Unlike the desktop prime and enterprise editions, QBO is primarily intended for small firms that will allow their bookkeepers to make computational reports.
In its options there is no separate production option, in this text, we will explain how we made the integration.
1. Connecting ERPAG and QBO
Connecting is quite simple, through the administration module.
In the current version, documents can only be sent to QBO. For most of our users, a large number of documents is entered by accountants (bookkeepers) directly into the accounting, which is not of any particular importance in ERPAG (eg in ERPAG only inventory is tracked, while QBO includes rental costs, utility bills …).
2. Setting up the items.
When you are creating or editing an item, it is necessary to specify QBO accounts. (Note – product synchronization is always over SKU)
In our example, we will take a simple product – a bike that contains front and rear wheel.
3. Purchasing the items (Purchase Order)
The purchase is done through the Purchase Order. Note that only those Purchase Orders for which the Supplier Invoice has been generated will be synchronized with QBO.
4. Purchase order – QuickBooks Online synchronization
Synchronization is not done automatically when you enter a document, it’s required for the operator to click the synchronization button in the Accounting module.
When the form opens, all documents that can be sent are displayed, as well as the type of document that will be created in QBO.
Through the bulk action, we will determine which documents will be sent to QBO (eg we will only send documents from the previous month).
Received and invoiced purchase order will become Bill in QBO.
Which has its own transaction journal.
5. Work order – synchronization with QuickBooks Online
In our example we will create a Work order (Based on – Bill of materials), where we will load material, deliver the finished good and complete the work order.
Only the completed work orders will appear in the list for QBO synchronization.
QBO still doesn’t have a document that would fit our ‘work order’ document, so the loading material will create the ‘dummy invoice’ in order to decrease the inventory, and ‘dummy bill’ to increase the finished product inventory.
‘Dummy invoice’ – Decreasing the item’s quantity
The amount of the ‘Dummy invoice’ is 0, because it’s not the real sale, just decreasing the stock.
‘Dummy bill’ – Increasing the item’s quantity
With this, we managed to make the changes in our inventory in QBO.
6. Sales Order – Synchronization with QBO
For the produced item (Bike, in our example), we will create a Sales Order which we will pack and invoice.
** Note – QBO has an integrated sales tax system for the US. It may happen that the sales tax calculation is different from ERPAG. For a proper calculation of a sales tax, you must consult your accountant.
In the journal we can see that the COGS is 0, because the ‘dummy invoice’ that was created for the Work Order has that amount.
With ‘dummy’ documents we managed to update the inventory and form adequate COGS.
Profit and loss in QBO
Income statement in ERPAG (Internal accounting)