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  #1  
Old 03-27-2008, 06:16 PM
zoenva zoenva is offline
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I am using Quickbooks and another program, need help!

I am handling the bookkeeping for a friend who has their own tool franchise business. I am posting all of his accounting in Quickbooks however, he has another program that handles all of his transactions. He has way too many customers and a lot of purchases so it wouldn't be feasible to key everything into Quickbooks so I have been posting a lot of journal entries. I have created all of his customers as one customer in Quickbooks and weekly I post his sales as follows:

I credit the Sales account and Sales Tax account and Debit Accounts Receivable. Then I receive customer payments in the Quickbooks.

Whenever he makes a tool purchase, I have been using the cost of goods sold expense.

I need to somehow keep track of his inventory amount so I know I need everything set up differently. Can someone please suggest how I should go about doing this? Any help is greatly appreciated!
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Old 03-28-2008, 07:43 AM
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lisa_mn lisa_mn is offline
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I'm assuming the other program gives you the detail of what has been sold?

If you want to track inventory in QB, you'll have to set up all the inventory items and make an adjustment to put the Qty on hand into stock as of whatever date you start tracking it.

Then, instead of doing a journal entry with the weekly summary, you'll enter a weekly invoice with the totals of each product sold.

I'd probably go with a daily invoice so that the cash is easier to reconcile, but whatever works for you.
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  #3  
Old 03-28-2008, 10:24 AM
zoenva zoenva is offline
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Thanks Lisa

I'll set up just one inventory item in Quickbooks since all of the inventory items are tracked with the other program.
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Old 03-28-2008, 11:24 PM
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you should make it a non-inventory type, otherwise, you'll end up with a bunch of negative inventory for something that doesn't exist.
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  #5  
Old 04-02-2008, 10:41 PM
zoenva zoenva is offline
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What if I created an asset account called "Inventory". And use Cost of Goods sold as the offsetting account.

Then, periodically, adjust that to an updated report from the other system.

Would this work even though I have been posting his tool purchases from vendors to the COGS acct? Or should I handle a different way?

Thanks!!!
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  #6  
Old 04-03-2008, 06:37 AM
Joe Williams Joe Williams is offline
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If you use the "Inventory" asset account for all of the tool purchases, then on a monthly basis you could journal the value of the tools sold from "Inventory" asset to COGS.
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Old 04-03-2008, 08:38 AM
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or vice versa - if you're using the COGS account for purchaess, you can adjust it into inventory at the end of the month.
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  #8  
Old 04-03-2008, 11:46 AM
zoenva zoenva is offline
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I was still confused on how to do this so I created a dummy company in quickbooks and this is what I did:

-I created 'inventory asset' in other current assets

-I created an item called 'snap on tools' as an inventory part (the main company the owner purchases from and who generates his reports) and selected 'sales' as income

-I created an item called ‘other tools’ because sometimes he buys tools from other vendors that won't show up on snap on reports

I also created an item called sales tax and entered the tax dept as the vendor. I had to do this because sometimes on his snap on report, the tax amount varies.

Each week, I will create sales receipts for total sold daily and select 'snap on tools' as the item

When I ran financial reports in QuickBooks for the dummy company it looks correct.

The only problem I'm going to have is when he purchases from outside vendors. I have sent the owner an email to ask how this affects his snap on reports...does he still invoice the customer even though he didn't purchase from snap on. If so, he isn't doing it correctly.

Also I am gonna have to delete all of the jounal entries I created, ugh!

Anyway, if this sounds like the best solution, please let me know.

Thanks!
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  #9  
Old 04-03-2008, 12:15 PM
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I can spend hours with clients on this kind of setup and figuring out the best way to handle things. I would encourage you to find a local ProAdvisor to sit down with you to develop the best system for your situation.
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