Purpose

In order to fully integrate both TRUE and QuickBooks in perfect harmony with the use of Products, users are required to either create Products in TRUE or import the Item List from QuickBooks. TRUE’s QuickBooks Integration maintains compatibility with Inventory management for company financials using one of two options:

1. Strict use of Product/Items for Purchase Orders, subsequent Bill records, and Invoices.
2. Manual adjustments for materials purchased and sold in TRUE.

QuickBooks Inventory & Products

Adding Products in TRUE:

1. Requires an Inventory, COGS and Revenue ledger account assigned to each Product.
   • This requirement will allow users to purchase and sell materials that will designate which ledger accounts the data migrates to; forgoing ‘Default Ledger Accounts’ assignments.
2. Once Products are created in TRUE, users will need to sync the data to a QuickBooks file. 
3. From the Products Module users can batch or individually select each Product(s) and ‘Approve Sync’ the Product data for QuickBooks. 
4. Navigating to the ‘Export’ section of the TQB File or native QuickBooks Dashboard (QuickBooks Online only) users can select the ‘Product’ mode and select the records and choose ‘Sync Batch’ to migrate the data from TRUE to QuickBooks. 

Importing Products from QuickBooks:

1. From the ‘Import’ section of either the TQB File or native QuickBooks Dashboard in the TRUE Solution (QuickBooks Online only), users will navigate to the ‘Products’ submodule
2. Select ‘Import’. This will migrate all ‘Active’ Items in the QuickBooks Item List for use in TRUE. 

Note: The Ledger Accounts and any additional settings utilized in QuickBooks will be auto-assigned in TRUE. Users will not be able to change these predetermined settings in TRUE.

After Products/Items are Imported:

1. All Purchase Order Line Items must be linked with Products. Pricing is less important as whatever Pricing is selected in TRUE will be migrated to QuickBooks. No Pricing, even if assigned in QuickBooks, will overwrite any data sent to QuickBooks.
2. When creating Bills (Vendor Invoices), these actions will need to be generated from the Purchase Order record. From either the underlying Purchase Order or Bill record, it’s imperative users enter the quantity and cost. TRUE uses a weighted average system; establishing a quantity and cost per each line allows our system to calculate the unit cost. 
   • From a selected Purchase Order, users can select ‘Options’ and ‘New Bill’. This action will create a new Bill in TRUE, inherit the characteristics of the Purchase Order, and migrate the data to designated ledger accounts assigned from the Product in TRUE or import Item from QuickBooks.
3. When Invoices are created in TRUE it is mandatory that the Line Items of the Job are compiled using Products. Subsequent Invoices prepared from the Job record, will propagate the Product as line items and when synced to QuickBooks, divy up the dollar amounts based on the mapped Revenue Accounts per each Product/Line Item. 
4. This process will additionally deplete your Inventory and generate entries for COGS and Revenue. The COGS created journal entries will conduct the weighted average unit cost multiplied by the quantity  sold; whereas the Revenue journal entry is simply looking at the sell price per each line item(s) along with any additional tax figures added on top.
5.  Line Items of Jobs can either be marked as ‘Taxable’ or ‘Non-Taxable’ subjecting the line item to additional dollar amounts or not when the journal entry is created in QuickBooks.

QuickBooks Inventory & Manual Adjustments

An alternative to using strict Product and rules for all subsequent generated data in TRUE, users can opt for a more conventional method of using Default Ledger Accounts and utilizing Reports in TRUE to make manual adjustments monthly, quarterly or on an annual basis. This method requires users to forgo the use of Products linked to QuickBooks; Bill records will be assigned an Inventory ledger account and be synced to QuickBooks to increase the Inventory value. A Company Preference ‘always used expense based Bills’, will send the data from one system to the other accordingly. 

From the Inventory Module, users can run a report to identify items sold and identify what records compose the decrease in Inventory for a given accounting period. Once the data is queried, users can export the data via Excel to arrive at a total dollar amount. This data is used to reduce Inventory (credit) and increase COGS (debit) via a manual journal entry in QuickBooks.

Conduct a report in QuickBooks for each Inventory and COGS account for a particular accounting period or what was sold, and create (1) entry to reverse what was already recorded from syncing Invoices from TRUE to QuickBooks. 

QuickBooks Inventory with Multiple Companies

Multiple TRUE files can communicate with each other to assist with “Installation” and “Supplier” workflows.  For example, the following sequence is supported in TRUE

1. Installation company obtains a job from a customer.
2. Installation company creates a purchase order for the job.
3. Installation company transmits the purchase order to the Supplier within TRUE.
4. Supplier automatically has a job created based on the Installation company’s purchase order.  TRUE can optionally create components in the Supplier’s job if they were previously set up in the “Products / Services” module.
5. Supplier can deplete inventory without further data input.
6. Supplier creates invoices that already link to QuickBooks products without further data input.

QuickBooks Inventory with TRUE Fence or other Integrated Service

To achieve the highest level of efficiency, eliminate errors, reduce labor time, and expedite production, the sales team needs to use the same or related information that the Operations and Accounting teams use. 

Sales Workflow

Create customer quotes with accurate pricing and material lists.  This can be done by using tools such as TRUE Fence, ArcSite, and others.  To be successful, this tool must be populated with the same product information that’s used in Operations and Accounting.

Operations Workflow

Jobs, purchase orders, and inventory records must all use the same product information that’s used in Sales and Accounting.  This means the Sales material lists must flow seamlessly into jobs.  To do this, the products the Operations team needs must match the products the Sales team uses.

Accounting Workflow

Invoices and bills must use the same product information that’s used in Sales and Operations.  This means the Operations jobs and purchase orders must flow seamlessly into invoices, inventory, and bills.  To do this, the products the Accounting team needs must match the products the Operations team users.

All three teams must use the same data to be successful.  If any team fails to do this, the rest of the teams will endure inefficiency, errors, increased labor time, and slower production.  

Automated Inventory in QuickBooks Option

1. Products are always defined in QuickBooks, then synced from QuickBooks to TRUE.
2. TRUE’s products are always used in TRUE Fence, ArcSite, etc.  Items are never manually typed into quote, job, purchase order, invoice, or bill.  They’re always selected from a pre-set list.
3. Every item to be depleted from inventory is itemized on an invoice synced with QuickBooks, no exceptions.
4. Every item to be replenished in inventory is itemized on a bill synced with QuickBooks, no exceptions.

Pros:  QuickBooks inventory will automatically stay up-to-date as invoices and bills are processed.

Cons:  Often seen as too rigid and unrealistic to day-to-day sales and procurement situations.

Manual Inventory in QuickBooks Option

1. Use defined products in TRUE without the need to sync them or even create them in QuickBooks.
2. Sales teams can create new items as they’re needed which will appear for Operations use and not interfere with Accounting.
3. TRUE is used for inventory levels, not QuickBooks.
4. Invoice line items must match the items that were depleted from inventory (Products must be used).

Pros:  Easy to use with lots of flexibility.

Cons:  Inventory in QuickBooks will be performed via a manual journal entry in QuickBooks based on reporting obtained from both QuickBooks and TRUE.  This cannot be automated.