QuickBooks Online is Intuit’s cloud-based accounting software. Unlike the desktop prime and enterprise editions, QuickBooks Online 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 QuickBooks Online
Connecting is quite simple, through the administration module.
In the current version, documents can only be sent to QuickBooks Online. 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 QuickBooks Online includes rental costs, utility bills …).
2. Setting up the items.
When you are creating or editing an item, it is necessary to specify QuickBooks Online 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 QuickBooks Online.
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 QuickBooks Online.
Through the bulk action, we will determine which documents will be sent to QuickBooks Online (eg we will only send documents from the previous month).
Received and invoiced purchase order will become Bill in QuickBooks Online.
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 QuickBooks Online synchronization.
QuickBooks Online 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 QuickBooks Online.
6. Sales Order – Synchronization with QuickBooks Online
For the produced item (Bike, in our example), we will create a Sales Order which we will pack and invoice.
** Note – QuickBooks Online 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 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 QuickBooks Online
Income statement in ERPAG (Internal accounting)
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