V8 - Purchasing transaction interaction

In seeking to ensure that SOS Inventory and QuickBooks Online are reconciled, it is important to understand how the two systems interact. Here is how purchasing forms—purchase orders, item receipts, and returns to vendors (RTVs)—are handled: 

• A purchase order created in SOS Inventory will create a purchase order in QuickBooks and vice versa.  When the purchase order is added/edited/deleted in one system, the sync will add/edit/delete it in the companion system.  Purchase orders do not affect any accounts.
   
• When an item receipt is created in SOS Inventory, the item receipt increases inventory quantity and value in SOS Inventory.  The value of this inventory comes from the cost listed on the item receipt.
   
  • SOS Inventory will post a transaction to QuickBooks matching the item receipt, depending on the user’s selected Payment field option.
    • If Bill was chosen as the payment type, SOS Inventory will post a bill (vendor invoice) in QuickBooks that increases the asset account(s) of the item(s) on the item receipt and affects Accounts Payable.
    • If Cash, Check, or Credit was chosen as the payment type, SOS Inventory will post a purchase expense in QuickBooks that increases the asset account(s) of the item(s) on the item receipt and affects the default cash/check/credit account (set in the Inventory Settings page of SOS Inventory).
    • If None was chosen as the payment, SOS Inventory will not post anything in QuickBooks to reflect the item receipt.
       
    edit_noteNOTE: If the bill or purchase expense that is posted to QuickBooks Online by SOS Inventory is subsequently edited or deleted QuickBooks, this will not update the item receipt in SOS Inventory. Also, if a bill or purchase expense is added directly in QuickBooks, this will not create an item receipt in SOS Inventory.

• For Pro plan users that use the landed costs feature in SOS, the items used in the Other costs area of item receipts must be configured correctly.  When you use this feature, these items should be defined as expense items.  However, the expense account of these items should be your inventory asset account.  In this methodology, 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.

   

• A return to vendor (RTV) transaction created in SOS Inventory removes inventory quantity and value from SOS Inventory. This transaction will produce either a journal entry or vendor credit, depending on the options selected.

  • When the Create vendor credit box is checked, a vendor credit is produced in QuickBooks that decreases the asset account(s) of the item(s) on the RTV and also affects your accounts payable to the vendor on the RTV.

  • If the Create vendor credit box is unchecked, select an account from the Account dropdown list to produce a journal entry in QuickBooks. The journal entry decreases the asset account(s) of the item(s) on the RTV and also affects the account you selected on the RTV.
     

  edit_noteNOTE: If the journal entry or vendor credit that is posted to QuickBooks by SOS Inventory is subsequently edited or deleted in QuickBooks, the change in the journal entry or vendor credit will not update the RTV in SOS Inventory.
  edit_noteNOTE: Adding a vendor credit in QuickBooks will not create an RTV in SOS Inventory.
  edit_noteNOTE: On returns to vendors, the item that is removed from inventory will affect the asset and accounts payable accounts according to the valuation method you have chosen in SOS Inventory. This value may or may not be the same as the amount of credit the vendor (supplier) provides. If this is the case, it is recommended that you add a second line to the journal entry or vendor credit (depending on which option was chosen) in QuickBooks to account for the difference in the valuation-method-derived value of the RTV and the amount of actual credit given by the vendor (supplier).