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Quickbooks Procedures
WHAT IT IS

A procedural documents that explains some important manual functions that must be managed in QuickBooks regularly.

WHAT IT DOES

The relationship between The Edge and QuickBooks is unidirectional, meaning The Edge posts to QuickBooks but is unaware of any journal entries, additions, or subtractions of data that occurs directly in QuickBooks. That means you must perform these procedures—failure to do so results in inaccurate records, difficulty reconciling accounts, and erroneous financial statements.
As an example, when an item is returned to the vendor, The Edge posts an entry to QuickBooks reducing the appropriate inventory asset account. The offset posting goes to a special holding account specific to items sent back to the vendor. The Edge has no knowledge of how or when the vendor credits you for this item. When the credit is received, the store bookkeeper must post this credit against the holding account.
When reconciling data between The Edge and QuickBooks, you may encounter records, balances, or entries that seem unexplained. There are four exceptions reports that may help research such anomalies (see below). These reports are explained in more detail in The Edge User Guide in the section entitled Reports.
  • Voided Sales
  • Deleted Items
  • Item Cost History
  • Items Returned by Customer.
TAKE NOTE: Abbott Jewelry Systems, Inc. cannot be held responsible for the maintenance of your QuickBooks financial data. Resolving inaccurate financial information is not something we have the expertise to assist with. You would need to seek assistance from your accountant. Be sure to maintain your books!
DISCLAIMER: These procedures are based on an integration using the suggested chart of accounts and mapped as outlined in The Edge documentation. The integration between The Edge and QuickBooks is very flexible. Your specific setup and integration may require additional or different account maintenance steps.

HOW IT WORKS

Daily Posting
Before you do these manual procedures, make sure all transactions in Post Now are done:
  1. In the Edge, select Administrative → QuickBooks → Post to QuickBooks Now.
  2. The Edge will return a message that reads Done when it is finished integrating.
  3. Select Close.
  4. In The Edge, select Administrative → QuickBooks → G/L Report. This will provide all the transactions that were posted from The Edge into QuickBooks. It will also provide data required for manual procedures.
  1. Enter the required dates.
  2. If you want to see all transactions, select Show Details.
  3. Results will appear below.
Inventory RTV
This should be an asset account and is used when an item is marked returned to vendor (RTV). When an item is marked RTV, The Edge is finished with it, so this posting moves the item value from your primary asset account to this temporary sub-asset account. You will have to post your own QuickBooks entries to move assets from this account to other accounts when you receive credit or payment from the vendor for returned items.
Procedures
When you enter a Return to Vendor in The Edge, it debits Inventory RTV and credits Inventory Edge.
When you enter the Invoice in QuickBooks, debit Accounts Payable and credit InventoryRTV. To do so:
  1. To find items returned in The Edge, go to Administrative QuickBooks G/L report.
  1. Select the date.
  2. Group by G/L Account.
  3. Select Posted Items and Voided Sales.
  4. Select OK.
  1. Look for a balance in the Inventory RTV account.
  2. Now we run a report to find the items returned and to whom they were returned. Go to Reports → Inventory → In Stock by Category.
  3. To enter a credit payable, go to QuickBooks → Vendors → Enter Bill.
  1. Select Credit instead of Bill.
  2. Select the vendor.
  3. Enter the date of the credit.
  4. Enter the amount of the credit.
  5. Select Inventory Asset Inventory RTV for the account.
  1. Save and close.
Scrapped Goods
This should be an asset account, and is used when an item is marked scrapped. When items are marked scrapped, The Edge is finished with them; therefore, much like RTV, this posting moves the item value from your primary asset account to this temporary sub-asset account.
You will have to post your own General Ledger entries to move assets from this account to other accounts when you determine the retained value of the scrapped goods and how much to write off.
Procedures
When you scrap an item in The Edge, it:
  1. Debits INV Scrapped Goods
  2. Credits Inventory Edge.
If scrapped goods are recovered as materials, and you receive payment, in QuickBooks, you should:
  1. Debit Scrap COGS
  2. Credit INV Scrapped Goods
  3. Debit Cash
  4. Credit Scrap Sales.
If the value of these scrapped goods should be recorded as a loss, make your accountant aware of that value so he or she can do so.
TAKE NOTE: If you must pay for labor to disassemble a scrapped part, be sure to post for only the actual parts.

EXPAND YOUR EDGE EDUCATION

If you’re interested in learning about more QuickBooks procedures you must do, such as Refunds Due, Missing Inventory, and to identify missing identify memo items, click below or visit memo payable section on The Edge Knowledgebase.

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