QuickBooks Online

QuickBooks Online is powerful online accounting software that has localizations for many countries. MRPeasy focuses on manufacturing resource planning, reporting, inventory management, sales, and procurement. MRPeasy together with QuickBooks accounting creates a very powerful ERP system. We strongly recommend performing all business operations in MRPeasy, and in QBO the accounting only.

It is possible to make a basic or an in-depth integration.

Basic integration:

  • Easy to set up.
  • Only sales and purchasing documents can be duplicated to QuickBooks Online: Invoices, Credit Invoices, Prepayment invoices, Purchase Orders, Purchase Invoices.

In-depth integration:

  • Requires expert accounting knowledge to complete.
  • Additionally, all inventory and manufacturing transactions of each day are posted to QuickBooks Online with a manual journal entry.
  • These journals include balance changes in inventory accounts, Work in progress (WIP), Cost of Goods Sold (COGS), etc.

Jump to:

  1. Demo video: QuickBooks Online integration
  2. Setting up the integration with QuickBooks Online.
  3. How does the integration work between MRPeasy and QuickBooks Online?
  4. When are synchronizations performed?
  5. How does inventory tracking work in MRPeasy?
  6. Troubleshooting, synchronization logs.

Setup of the integration between MRPeasy and QuickBooks Online

Jump to:

  1. Notes about using inventory tracking in QuickBooks Online.
  2. Connect MRPeasy and QuickBooks Online.
  3. Select what to synchronize
  4. Synchronization of payments.
  5. Choose how Purchase Orders / Purchase Invoices and Credit-invoices are synchronized.
  6. Select accounts for the integration.
  7. Custom accounts for products.
  8. Check products' Expense accounts in QuickBooks Online.
  9. Get balances in MRPeasy and QuickBooks Online in sync.
  10. Import customers, vendors, and items from QuickBooks Online.
  11. Review, change or disconnect the integration.
Inventory tracking in QuickBooks Online

Inventory (stock) tracking should not be used in QuickBooks Online for items that are managed in MRPeasy. QuickBooks makes some automatic inventory transactions for these items, e.g. when they are bought or sold, which MRPeasy does not control.

MRPeasy itself posts changes in inventory balances to accounts during nightly synchronizations.

Connect MRPeasy and QuickBooks Online

Step 0. Stop all activity

You should cease all activity in MRPeasy and QuickBooks Online during the process of setting things up.

Step 1. Connect MRPeasy and QuickBooks Online
  1. Log in to MRPeasy.
  2. Navigate to Settings -> System settings -> Integrations.
  3. Click on Connect to QuickBooks to connect MRPeasy and QuickBooks.
Step 2. Choose what to synchronize

It is possible to choose the synchronization of the following:

  1. Sales - If selected, sales documents (Invoices, Credit Invoices, Prepayment invoices) are sent to QuickBooks Online automatically. If not selected, these can be sent manually only.
  2. Procurement - If selected, procurement documents (Purchase Orders or Purchase Invoices) are sent to QuickBooks Online automatically. If not selected, POs can be sent manually only.
  3. Balances - If selected, the financial transactions that are recorded in MRPeasy are automatically posted to QuickBooks Online with journal entries. If not selected, the posting of balances with journals is completely disabled.

Important notes:

  • Manual journal entries, which have been posted to QuickBooks Online are shown in detail at Settings -> System settings -> Integrations -> QuickBooks -> Synchronization logs.
  • MRPeasy is a perpetual inventory system, if the periodic inventory system is used in your accounting (in QuickBooks Online), then synchronization of balances should be disabled.
  • Especially, if you use tracked inventory in QuickBooks, syncing of balances should not be used.

Synchronization of payments:

  • Payments are automatically synchronized two-way only when balances are synchronized.
  • Payments for purchase invoices are synchronized only in case PO-s are sent to QBO as bills.
  • If you do not sync balances, then payments will only be synchronized:
    - When a new invoice or a purchase order is sent to QuickBooks from MRPeasy (and it has a saved payment).
    - When an invoice or a purchase order is opened in MRPeasy and button Update in QuickBooks is pressed.
Step 3. Choose how Purchase Orders and Credit invoices are sent to QuickBooks Online

Purchase Orders from MRPeasy can be posted as:

  1. Purchase Orders in QuickBooks.
    - If Several invoices per PO is enabled, then POs are not posted to QuickBooks. Purchase Invoices are posted as Bills.
  2. Bills in QuickBooks.

Credit invoices from MRPeasy can be posted as:

  1. Credit Notes in QuickBooks, or
  2. Refund Receipts in QuickBooks.
Step 4. Select accounts for the integration with QuickBooks Online
  1. A default Purchases (Current Asset) account.
    - This is the product's Expense account on the QuickBooks Online Bill.
    - This account is used by MRPeasy when creating new items in QuickBooks Online.
    - If balances are synchronized, this account holds the value of billed, but not received goods. The PO receipt transaction (credit) is posted with a journal on this account. 
  2. A default Sales (Revenue) account.
    - This is the Income account on the QuickBooks Online Invoice.
    - This account is used by MRPeasy when creating new items in QuickBooks Online.
  3. A Bank (Current asset) account.
    - An account to where payments are saved if entered in MRPeasy.
  4. Optionally, a Customer Prepayments (Current liability) account.
    - It is used when a prepayment invoice is paid by a customer.

If balances are not synchronized, skip to selecting custom accounts for your products.

If synchronization of balances is enabled, additionally select:
  1. Default Finished goods (Current asset) and Materials on hand (Current asset) inventory accounts.
    - By default, all items with a BOM are considered finished goods; items without a BOM are considered materials.
    - Inventory/Stock tracking must not be used for items in QuickBooks Online.
  2. A Work in progress (Current asset) account.
    - An account for holding the value of currently unfinished goods, open manufacturing orders.
  3. A Direct labor (Current liability) account.
    - An account for posting direct labor costs, which are applied to product's cost (to work in progress) according to time worked on a job.
    - If the allocation of direct labor is not desired, then users’ hourly labor rates must be defined as 0 in MRPeasy.
  4. An Applied manufacturing overhead (Current liability) account.
    - An account for posting manufacturing overhead costs, which are applied to the product's cost (to work in progress).
    - If the allocation of manufacturing overhead is not desired, then workstations’ hourly rates, and fixed, and variable costs in routings must be defined as 0 in MRPeasy.
  5. A Transfer orders liability (Current liability) account.
    - If you have several sites between which you move items, then transfer fees, which are applied to inventory, are posted on this account.
  6. A default Cost of goods sold (Expense) account.
  7. Inventory Adjustments (Expense/Revenue) accounts.

If balances are not synchronized, save the mapping of accounts, and the integration is set up! Continue to getting MRPeasy and QuickBooks Online in sync.

If balances are synchronized, continue to check your product's Expense accounts in QuickBooks Online.

Step 5. Select custom accounts for products

Optionally, in the "Custom accounts" section on the integration configuration page, you can define custom accounts per product group:

  1. A Purchases (Current asset) account.
    - This is the product's Expense account on the QuickBooks Online Bill.
    - This account is used by MRPeasy when creating new items in QuickBooks Online.
    - If balances are synchronized, this account holds the value of billed, but not received goods. The PO receipt transaction's credit is posted with a journal on this account.
  2. A Sales (Revenue) account.
    - This is the product's Income account on the QuickBooks Online Invoice.
    - This account is used by MRPeasy when creating new items in QuickBooks Online. 
  3. An Inventory (Current asset) account.
    - Inventory/Stock tracking must not be used for items in QuickBooks Online.
    - Used only if balances are synchronized.
  4. A Cost of Goods Sold (Expense) account.
    - Used only if balances are synchronized.

If balances are not synchronized, save the mapping of accounts, and the integration is set up! Continue to getting MRPeasy and QuickBooks Online in sync.

If balances are synchronized, continue to the next step.

Step 6. Check products' Expense accounts in QuickBooks Online

If balances are synchronized, for all existing products in QuickBooks Online, you must verify that the Expense account matches the integration configuration.

  1. Go to QuickBooks Online -> Sales -> Products and services.
  2. Open a product.
  3. Check that the "Expense account" in QuickBooks Online product details matches the "Purchases" account defined in the integration configuration.
  4. Repeat for all items.
  5. Once done, save the integration configuration.

After the mapping of accounts is saved, the integration is set up! Continue to getting MRPeasy and QuickBooks Online in sync.

Getting MRPeasy and QuickBooks Online in sync

When the integration is first established, it is important that data in both of the systems match.

First synchronization

The first time, when the connection between MRPeasy and QuickBooks Online is established:

  1. The earlier input POs and Invoices are posted only after you open and save them. If you do not make changes to old documents, they are not posted to QuickBooks Online.
    - If you already have some invoices, POs, or bills in QuickBooks Online, you should not send these from MRPeasy to QuickBooks Online again. You will risk having duplicates in QuickBooks Online.
  2. The changes in account balances from that day are posted to QuickBooks Online during the next nightly synchronization.
Get starting account balances in sync

If you are synchronizing balances, you must take great care that the beginning balances in MRPeasy and QuickBooks Online match.

This is easiest if there are no in-progress Manufacturing Orders, and no invoiced-and-not-received Purchase Orders in MRPeasy.

Generally, the following steps should be taken:

  1. Establish the right balances for all of your accounts.
  2. Make sure that the inventory counts and balances are correct in MRPeasy, and the balances match with QuickBooks Online.
  3. Send data from MRPeasy to QuickBooks Online:
    - Post any changes of balances during this day with a journal entry by clicking "Synchronize now" in Settings -> System settings -> Integrations -> QuickBooks Online. 
    - Optionally, sales invoices by opening them and sending them to QuickBooks Online.
    - Optionally, purchase invoices by opening them and sending them to QuickBooks Online.
  4. Check if the balances match in MRPeasy and QuickBooks Online.
    - You may need to adjust the manual journal, which was just created.

If you have in-progress Manufacturing Orders in MRPeasy, consider the following:

  • If MO was started:
    - Before the day of initializing the integration, the integration's WIP account in QuickBooks Online should reflect the value of consumed materials from previous days.
    - On the day of initializing the integration, its transactions are posted with the first synchronization. No manual action necessary.
  • Alternatively:
    a) You may want to finish all in-progress Manufacturing Orders, before initializing the integration. 
    b) If there is still in-progress manufacturing, you could also:
    - Manually create a stock lot for the finished goods in MRPeasy. Do not create a MO in MRPeasy.
    - Or, re-create the situation in MRPeasy and QuickBooks Online as if the manufacturing had not started. Start the MO only after step (5) above.

If there are invoiced and not received Purchase Orders in MRPeasy:

Importing stock items, customers, and vendors from QuickBooks Online

It is possible to import stock items, customers, and vendors from QuickBooks to MRPeasy at MRPeasy -> Settings -> System settings -> Integrations -> QuickBooks, by using the respective buttons.

This will import new objects only. If some objects were imported before, these will be skipped and not imported twice.

Stock items are matched by SKU in QuickBooks and Part Number in MRPeasy. The Name field in QuickBooks maps to the Part description field in MRPeasy.

Update or disconnect the integration

Should you wish to review the chosen settings for the integration, or make any changes to the integration, you can do this at Settings -> System settings -> Integrations -> QuickBooks -> Change accounts.

Please note that when you change accounts, then the next transactions are posted to the new accounts. No changes are made to any historical data already posted to QuickBooks.

The integration can be disconnected at Settings -> System settings -> Integrations -> QuickBooks -> Disconnect.

How the integration works between MRPeasy and QuickBooks Online

Jump to:

  1. Sending Purchase Order, Bills, and Invoices to QuickBooks Online.
  2. Creating new items, customers, and vendors in QuickBooks Online.
  3. Events and transactions.
  4. Synchronization of payments.
  5. Synchronization schedule.
  6. Additional currencies.
  7. Inventory tracking principles in MRPeasy.
  8. How to reconcile direct labor, applied overhead, and transfer expense liabilities?

Working with Purchase Orders and Invoices

Posting new items, customers, and vendors to QuickBooks
  • Stock items are matched by SKU in QuickBooks and Part Number in MRPeasy. The Name field in QuickBooks maps to the Part description field in MRPeasy.
  • When posting invoices and purchase orders to QuickBooks, MRPeasy will create stock items, customers, and vendors in QuickBooks, if they do not exist.
  • According to the integration configuration, an Expense and a Sales account will be configured for the newly created item in QuickBooks Online.
Synchronizing Purchase Orders or Bills with QuickBooks Online

During integration setup, you must choose if Purchase Orders in MRPeasy are posted to QuickBooks Online as Bills or Purchase orders.

Once the Invoice ID has been entered on Purchase Orders or Purchase Invoices in MRPeasy, then it will be synchronized to QuickBooks Online.

Posting additional fees on an MRPeasy Purchase Order to QuickBooks Online

If the "Additional fees "field is used on a Purchase Order in MRPeasy, then this is posted as a line item to QuickBooks Online.

This must be posted to the integration default account (Purchases). The additional fees are expenses that are added to inventory valuation. This will be expensed when finished goods are sold and included in COGS.

If additional fees are expensed immediately, and not part of inventory valuation, then for these, non-inventory items in MRPeasy can be used. In the QuickBooks Online Bill, or product configuration page, if necessary, the desired expense account can be selected for the item.

Synchronizing Invoices to QuickBooks Online

Once the invoice type is marked Invoice or Credit invoice, and status is not Dummy, they are synced to QuickBooks Online.

Prepayments

Prepayment invoices are posted to QuickBooks as Sales Receipts.

To post a prepayment to QuickBooks, the following conditions must be met:

  • Prepayment invoice must be fully paid.
  • Debit and credit accounts for prepayments must be selected at Settings -> System settings -> Integrations -> QuickBooks Online -> Change accounts.

MRPeasy posts prepayments to QuickBooks Online as follows:

  1. Customer prepayments service is created if it was not created by MRPeasy earlier.
  2. When posting a prepayment invoice, a sales receipt is created in QBO. The Customer prepayments line is added to the receipt.
  3. When posting a final invoice, the Customer prepayments line is added to the invoice with a negative value.

Events and transactions

The following tables describe all events and transactions, which are synchronized.

  1. Events in direction MRPeasy -> QuickBooks.
  2. Events in direction QuickBooks -> MRPeasy.

Events in MRPeasy and the resulting events in QuickBooks Online:

# MRPeasy document MRPeasy event QuickBooks event QuickBooks Debit account QuickBooks Credit account
Purchasing
1 Purchase Order Purchase Order is created. No event.    
1.1 Purchase Order / Purchase Invoice The 'Invoice ID' is saved. PO or Bill is created*. 'Purchases' QuickBooks controlled (eg, Accounts Payable)
1.2 Purchase Order / Purchase Invoice PO is updated. PO or Bill is updated*, if QuickBooks accepts the update. According to 1.1
1.3 Purchase Order / Purchase Invoice PO is received. Journal is made***.
(Exceptions: 2.2, 3.1)
'Materials on Hand' 'Purchases'
1.4 Purchase Order / Purchase Invoice  Payment is saved. Payment is saved for Bill**. (Payment is created according to the difference in the sum of saved payments in MRPeasy and QuickBooks.) QuickBooks controlled (eg, Accounts Payable) 'Bank'
1.5 Purchase Order / Purchase Invoice  Payment is deleted. No event, payment must be deleted manually.    
1.6 Purchase Order / Purchase Invoice PO is deleted. 1. If PO had additional transactions associated, a new journal is made with net adjustments***. According to 1.3, 2.2, 3.1
      2. PO/Bill is not deleted, it must be deleted manually.    
Purchasing - additional transactions of Subcontracting Purchase Orders
2 Shipment (for a Purchase Order.) Shipment is created for shipping parts to vendor No event.    
2.1 Shipment  Goods are picked from stock. Journal is made***. 'Work in Progress' 'Materials on Hand'
2.2 Purchase Order PO is received. Journal is made***. (This is an exception to 1.3) 'Finished Goods' 'Work in Progress'
'Purchases'
3 Purchase Order (for an operation in a MO.) "Shipment date" is saved. Journal is made***. 'Work in Progress' 'Purchases'
3.1 Purchase Order PO is received. No event. (This is an exception to 1.3)    
Manufacturing
4 Manufacturing Order Manufacturing Order is created No event.    
4.1 Manufacturing Order Parts are consumed. Journal is made***. 'Work in Progress' 'Materials on Hand'
 
4.2 Manufacturing Order Operations are started. 1. Journal is made with full planned manufacturing overhead cost***. 'Work in Progress' 'Applied manufacturing overhead'
  2. Journal is made with full planned labor cost***. 'Work in Progress' 'Payroll/Direct labor'
4.3 Manufacturing Order Manufacturing Order is finished. 1. Journal is made***. 'Finished Goods' 'Work in Progress'
      2. Journal is made to adjust manufacturing overhead and labor cost***. According to 4.1, 4.2.
Sales
5 Customer Order Customer Order is created No event.    
6.1 Invoice Invoice status is changed from 'Dummy' to 'Unpaid'. Invoice is created*. QuickBooks controlled (eg, Accounts Receivable) 'Sales'
6.2 Invoice Invoice is updated. Invoice is updated*, if QuickBooks accepts the update. According to 6.1
6.3 Invoice Payment is saved. Receive Payment is created**.
(Payment is created according to the difference in the sum of saved payments in MRPeasy and QuickBooks.)
'Bank' QuickBooks controlled (eg, Accounts Receivable)
6.4 Invoice Payment is deleted. No event, payment must be deleted manually.    
6.5 Invoice Invoice is deleted. No event, invoice must be deleted manually.    
7.1 Credit-invoice Credit-invoice status is changed from 'Dummy' to 'Unpaid'. If posted as Credit note:
Credit Note is created*.
'Sales' QuickBooks controlled (eg, Accounts Receivable)
      If posted as Refund receipt:
Refund Receipt is created*.
'Sales' 'Bank'
7.2 Credit-invoice Credit-invoice is updated. Credit Note or Refund Receipt is updated*, if QuickBooks accepts the update. According to 7.1
7.3 Credit-invoice Payment is saved. If posted as Credit note:
Receive Payment is created**.
(Payment is created according to the difference in the sum of saved payments in MRPeasy and QuickBooks.)
QuickBooks controlled (eg, Accounts Receivable)  'Bank'
      If posted as Refund Receipt:
No event.
   
7.4 Credit-invoice Credit-invoice is deleted. No event, Credit Note or Refund Receipt must be deleted manually.    
8.1 Prepayment invoice Invoice status is changed from 'Dummy' to 'Unpaid'. No event.    
8.2 Prepayment invoice Payment is saved. Sales Receipt is created*. 'Bank' 'Customer Prepayments'
8.3 Prepayment invoice Payment is deleted. No event, Sales Receipt must be deleted manually.    
8.4 Invoice Prepayment is applied to an invoice. A line "Customer prepayment" with the negative prepayment amount is added to the invoice*. 'Customer Prepayments' 'Sales'
8.5 Credit-invoice Credit-invoice is created for a refund of prepayment. If posted as Credit note:
Credit Note is created*.
Two lines are added to the Refund receipt in order to debit the 'Customer prepayments' account and credit the 'Bank' account:
- "Customer prepayments" with a positive prepayment amount.
- "Customer prepayment refund" with a negative prepayment amount.
'Customer Prepayments' QuickBooks controlled (eg, Accounts Receivable)
      If posted as Refund receipt:
Refund Receipt is created*.
Two lines are added to the Refund receipt in order to debit the 'Customer prepayments' account and credit the 'Bank' account:
- "Customer prepayments" with a positive prepayment amount.
- "Customer prepayment refund" with a negative prepayment amount.
'Customer Prepayments' 'Bank'
8.6 Credit invoice Payment is saved for credit-invoice for a prepayment refund. If posted as Credit note:
1. Cheque Expense is created** with category "Accounts Receivable (A/R)"
2. Receive Payment is created**, which automatically links the Cheque Expense and Credit Note.
(Payment is created according to the difference in the sum of saved payments in MRPeasy and QuickBooks.)

QuickBooks controlled (eg, Accounts Receivable) 'Bank'
      If posted as Refund receipt:
No event.
   
9 Shipment (for a Customer Order.) Shipment is created No event.    
9.1 Shipment Goods are picked from stock. Journal is made***. 'Cost of Goods Sold' 'Finished Goods'
Other inventory transactions
10 Manual stock lot A manual stock lot is created in MRPeasy during the stock-taking. Journal is made***. 'Materials on Hand' / 'Finished Goods' 'Inventory gain'
11 Write-off A manual write-off is created in MRPeasy during the stock-taking. Journal is made***. 'Inventory loss' 'Materials on Hand' / 'Finished Goods'
12 Transfer Order Transport fees are applied to a Transfer Order, and Transfer Order is received. Journal is made***. 'Materials on Hand' / 'Finished Goods' 'Transfer orders liability'
Other transactions
13 Purchase Order, Purchase Invoice, Manufacturing Order, Manual stock lot, Write-off, Transfer Order, Shipment Document is changed and inventory cost or balances change. If the original transaction, that is adjusted, is less than 3 months old, a journal is made with net adjustment***.

If transactions older than 3 months are adjusted, then this adjustment will not be posted to QBO automatically.

Adjustments for past periods can be restricted by setting the "Books closing date" in the MRPeasy Standard Accounting module.
According to the transactions, which are updated.

 

Events in QuickBooks Online and the resulting events in MRPeasy:

# QuickBooks document QuickBooks event MRPeasy event
Payments
1 Bill, Invoice Payment is saved. Payment is saved for corresponding Purchase Order / Purchase Invoice, or Invoice.**
(Payment is created according to the difference in the sum of saved payments in MRPeasy and QuickBooks.)
2 Bill, Invoice Payment is deleted. No event, payment must be deleted manually.

 

Synchronization schedule:

  • *) New invoices and purchase orders are sent to QuickBooks once per 5 minutes. Alternatively, it is possible to send a particular document to QuickBooks immediately by clicking the button Add to QuickBooks on the document's details page.
  • **) The synchronization of payments happens in the following cases:
    a. When a new invoice or a purchase order is sent to QuickBooks from MRPeasy*. 
    b. When an invoice or a purchase order is opened in MRPeasy and the button Update in QuickBooks is pressed.
    c. During nightly synchronizations***.
  • ***) Actions, that are made once per day, are performed during the evening (usually between 9 p.m. and 11 p.m.). These can be run manually by clicking button Synchronize at Settings -> System settings -> Integration -> QuickBooks. Manual synchronization can be performed once per 5 minutes.
    Actions that happen during this synchronization are:
    1. Synchronization of balances, by making a journal in QuickBooks.
    2. Synchronization of payments information between the systems.

Additional currencies

If several currencies are used, in order to send invoices, POs, or bills to QuickBooks, standard 3-character currency codes (USD, GBP, EUR, etc. according to ISO 4217) should be used for

MRPeasy sends the exchange rate together with each invoice/PO/bill in foreign currency.

Note that QuickBooks has two important limitations:

  1. Invoices to a customer and bills from a supplier must be in the same currency as his default currency in QBO.
  2. Once created, it is not possible to change a customer's/supplier's currency in QBO.
    E.g. if a customers' currency in QBO should be changed, go to your QuickBooks account, find that customer, and make it inactive. After that, please post an invoice to QBO.

Inventory tracking in MRPeasy

In MRPeasy, the principles of inventory tracking are the following:

  1. All items in inventory are tracked using stock lot tracking within MRPeasy. I.e. each batch of physical items is accounted for separately.
  2. By default, MRPeasy uses FIFO (FEFO, when Expiry dates are used) principle when booking goods for consuming or shipping goods from inventory. 
    It is possible to manually manage and override the bookings and consumption of inventory, e.g. for actual costing and/or for very detailed tracking and traceability.
  3. Financial transactions are automatically made when specific events happen with the inventory.
    This means that MRPeasy is a "Perpetual inventory system", not a "Periodic inventory system". If you use the periodical method for inventory valuation (and Cost of Goods Sold calculation) (in QuickBooks Online), then synchronization of balances from MRPeasy to QuickBooks Online should be disabled.

Reconciling accounts

How to reconcile a Direct labor account?

Direct labor cost is part of the cost of goods sold (Expense), and it is pre-applied to products before a pay run is made. This allows to estimate the real cost of products. But this also means that the pre-applied portion of labor costs must be reconciled with actual labor costs, to account for any difference between estimated and actual expenses.

Generic example, periodic reconciliation of posted direct labor:

  1. A pay run is made.
    For example, resulting account transactions might be the following:
    D Wages and Salaries (Expense)
    C Payroll (Current liability)
    D Payroll (Current liability)
    C Bank (Current assets)

  2. A manual journal entry is made to zero out direct labor liability for that period:
    D Direct labor account (Current liability)
    C Wages expense (Expense) / or COGS / or similar

Always consult your local accounting specialists, to make sure you follow local laws and regulations.

How to reconcile the manufacturing overhead account?

Applied manufacturing overhead is part of the cost of goods sold (Expense), and it is pre-applied to products before bills have actually been received. This allows to estimate the real cost of products. This also means that the pre-applied portion of expenses must be reconciled with actual expenses, to account for any difference between estimated and actual expenses.

Generic example, periodic reconciliation of applied manufacturing overhead:

  1. Bills are entered on expense accounts as normal.
    For example, resulting account transactions might be the following:
    D Expense account(s), e.g. COGS
    C Accounts payable (Current liability)
    D Accounts payable (Current liability)
    C Bank (Current assets)

  2. At the end of the accounting period, a manual journal entry is made to zero the applied manufacturing overhead account for that period:
    D Applied manufacturing overhead (Current liability)
    C Expenses account(s) / or COGS / or similar.

Always consult your local accounting specialists, to make sure you follow local laws and regulations.

How to reconcile the Transfer Orders Liability account?

Transfer orders cost is part of the cost of goods sold (Expense), and it is pre-applied to products before bills have actually been received. This allows us to estimate the real cost of products. But this also means that the pre-applied portion must be reconciled with actual expenses, to account for any difference between estimated and actual expenses.

Generic example, periodic reconciliation of posted transfer orders liability:

  1. Transportation expenses are entered as normal.
    For example, resulting account transactions might be the following:
    D Transportation (Expenses)
    C Accounts payable (Current liability)
    D Accounts payable (Current liability)
    C Bank (Current assets)

  2. At the end of the accounting period, a manual journal entry is made to zero the Transfer Orders Liability account for that period:
    D Transfer Orders Liability (Current liability)
    C Expenses account(s) / or COGS / or similar.

Always consult your local accounting specialists, to make sure you follow local laws and regulations.

Troubleshooting

Synchronization logs

To see what manual journal entries have been posted to QuickBooks Online, please go to Settings -> System settings -> Integrations -> QuickBooks -> Synchronization logs.

Issues:

  • Invoice is not posted to QBO.
    To quickly find the reason, please click the Add to QuickBooks button, after which you should see a relevant error message.
    There may be several reasons:
    a) Invoices are posted once per 5 minutes. To synchronize immediately, click Add to QuickBooks on the Invoice details page.
    b) MRPeasy only posts invoices in statuses 'Unpaid', 'Paid partially' or 'Paid'; and types 'Invoice' or 'Credit invoice'. Invoices in other statuses or types are not posted. Please check the status and type of the invoice.
    c) Quickbooks requires that all item names are unique. Please check that there are not several different items with the same name (item description).
    d) The invoice was created before the integration was initialized. Please open and save it.
  • Purchase Order is not posted to QBO.
    To quickly find the reason, please click the Add to QuickBooks button, after which you should see a relevant error message.
    There may be several reasons:
    a) Purchase Orders are posted once per 5 minutes. To synchronize immediately, click Add to QuickBooks on the Purchase Order details page.
    b) The "Invoice ID" must be saved in the Purchase Order details in MRPeasy, before it will be posted. Please check that this is done and the PO is saved. 
    c) In MRPeasy you have enabled software setting "Several invoices per PO = Yes", in which case POs are not sent to QuickBooks. Please open the PO and create an incoming invoice to send a bill to QuickBooks.
    d) The PO was created before the integration was initialized. Please open and save it.
  • Error messages when sending an invoice to QuickBooks Online after applying a tax.
    - When posting invoices to QBO, the applied tax rates must exist in QBO beforehand.
    - Please pre-configure these tax rates in QBO, or update these invoices and then try to post them again.
  • Error message "Business Validation Error: You must select an account for this transaction." when trying to post Invoice or PO to QBO.
    - Please go to QuickBooks -> Products, and check that every product in the document has both income and expense accounts set.
  • Error message "Invalid Reference Id : Accounts element id *** not found" when trying to synchronize balances.
    - Please go to MRPeasy -> Settings -> System settings -> Integrations -> QuickBooks -> Change accounts, and check that all accounts are selected.
  • Error message "Duplicate Document Number Error."
    - This means that there is already a document in QBO with this number.
    - This may happen when you delete a document in MRPeasy, do not delete it in QBO, and re-create the document in MRPeasy. MRPeasy does not delete documents in QBO automatically. If a document has been posted to QBO, and it is needed to delete it, please delete it manually in both systems. The software works like that to avoid a conflict when a document is posted to QBO, and your accountant starts to process it, and at the same time, somebody deletes this document in MRPeasy.
  • Error message when sending a document to QBO: "[Item]: Parent Reference invalid : This selection can only be a Category"
    To import an invoice with this item from MRPeasy to QBO you have to remove the colon from the Part description.
    When an item is imported to Quickbooks and it includes ":" (colon) in its Part description, then QBO handles this item name as follows: 
    - Information before the colon (:) in the Part description is imported as Product "Category" in QBO.
    - Information after the colon (:) in Part description is imported as Product "Name" in QBO.

Old version

Above mentioned functionality is available in the new version of the integration, from October 2-nd, 2017. If you have used the integration before that day, this functionality is not available. To enable it, go to MRPeasy -> Settings -> System settings -> Integration -> QuickBooks, disconnect from QuickBooks, and connect again.

Support

The integration between QBO and MRPeasy is maintained by MRPeasy. If you have technical questions about the integration, please turn to MRPeasy support. However, our Support team is unable to consult you regarding the setup of your accounting in QBO.

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