V8 - Other factors causing an SOS Inventory/QuickBooks mismatch

A number of factors can cause a mismatch between SOS Inventory and QuickBooks.

Archived and deleted items

Archived and deleted items do not reflect on the Inventory value report by default.  If you are reconciling for a previous date and items were used during the reconciliation period that have now been archived or deleted (inactivated), these items will not be reflected on the Inventory value report—even if they were active and not archived during the period of the report.

To correct this issue, go to the Options section of the Inventory value report and enable both Include archived items and Include deleted items before displaying the the report.

Transactions deleted or changed in QuickBooks after SOS Inventory created them

When SOS Inventory posts a transaction such as a bill, purchase expense, or vendor credit to QuickBooks, the resulting transaction in QuickBooks reflects the values entered on the transaction in SOS Inventory.  If transactions are subsequently edited or deleted in QuickBooks, this can cause a mismatch.

The Reconcile item receipts report will help identify these situations for item receipts.  The Reconcile vendor credits report will help identify these situations for vendor credits created from an RTV.

Unintended journal entries related to inventory starting value

Unintended journal entries can occur when a user enters inventory in SOS that has already been accounted for in QuickBooks.  If the value of this inventory (most commonly a journal entry associated with an adjustment) posts to QuickBooks, there will be an unintended increase to the asset account.  This situation is typically only common when first setting up the SOS Inventory account. 

To identify unintended journal entry situations, determine the starting balance of the QuickBooks account prior to beginning SOS Inventory, then check the transactions that posted to QuickBooks from the initial adjustments added in SOS Inventory to determine which entries were unintended.

Adjustments with an incorrect adjustment account

When an adjustment is created in SOS Inventory, the system allows you to choose an adjustment account.  The adjustment will create a journal entry in QuickBooks that affects the asset account(s) of the items on the adjustment and the adjustment account selected on the adjustment.  When a user chooses the asset account as the adjustment account, both sides (credit and debit) of the journal entry affect the same account—thereby adding value in SOS Inventory but not in QuickBooks.

To identify incorrect adjustment account issues, go to the Adjustments list (Operations menu > Inventory > Adjustments) in SOS Inventory.  Click on the Column chooser and enable the Adj acct column.  For any asset accounts (or other incorrect accounts) listed as the adjustment account, consider editing the adjustment and choosing a different adjustment account.

Duplicate journal entry postings for the same SOS Inventory transaction

Duplicate journal entry postings can occur when a transaction that created the original entry is edited. This causes two new entries in the sync queue: a delete journal entry to remove the original journal entry, and an add journal entry for the replacement.  The duplication is created when a user removes the deletion from the sync queue.

The following method can be used to check for duplicate journal entry postings:

1. In QuickBooks, export the cost of goods sold account(s) to check for duplicate journal entries for the same shipment, drop ship purchase order, and customer returns.
    

2. In QuickBooks, export the asset account(s) to check for duplicate journal entries for the same build, process transaction, inventory adjustment, and return to vendor.
    

3. Steps:

   1. Run report in QuickBooks on account(s), as applicable.

   2. Export reports to Excel. 

   3. In Excel:

      1. Use conditional formatting to highlight duplicate lines using the Memo/description column.

      2. Once duplicate lines are highlighted, check the journal entries associated with the duplicates.

Incorrect use of items listed in Other costs section of item receipts

Pro plan users have the option to use items on the item receipt transaction to calculate the landed cost value of the received items.  When this feature is used, items listed as other costs should normally be expense items.  However, the expense account of these items should be the inventory asset account. 

The expense incurred in this area of the item receipt both increases the asset account in QuickBooks and the value of the received items in SOS Inventory by the same amount.  When the expense account of the other cost items is an expense account rather than an asset account, the bill or purchase expense line in QuickBooks for the other cost items increases an expense account rather than an asset account.  When this happens, the value increase in SOS Inventory would be higher than the matching asset account value increase in QuickBooks, creating a mismatch.

To identify items that will be used as other costs and have an incorrect expense account, begin by exporting your items under the Export data page in SOS Inventory.  Note each item that will be used as an other cost and proceed to the Items list in SOS Inventory.  Edit each of the noted items to ensure the correct account type is chosen as the expense account of the item.  Once complete, it may be necessary to resync the item receipts that include other costs in order to correct the bills and purchase expense transactions in QuickBooks. This is to validate that the other costs lines increased the appropriate asset account.

Transactions added in QuickBooks that increase or decrease accounts but do not affect SOS Inventory

If a transaction is added directly in QuickBooks that increases or decreases the asset accounts in QuickBooks, this can cause a mismatch between the Inventory Value report in SOS and the total of the asset accounts in QuickBooks.

To help differentiate transactions created by SOS Inventory from those entered directly in QuickBooks, SOS Inventory enters a reference to the SOS Inventory originating transaction in the memo of the transaction posted to QuickBooks.  Checking the transaction register of the asset accounts can help identify transactions that were created directly in QuickBooks as the reference to the SOS Inventory transaction will be absent.