First, let’s look at COGS when syncing items as non-inventory
This is how to handle COGS when you are syncing all items to Quickbooks as non-inventory. The process to get accurate monthly COGS is the following:
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When purchase orders are entered and received, COGS is debited. At the end of the month, you do a journal entry that debits Inventory Assets and credits COGS. The amount of the debit/credit is the difference between your QB Inventory Asset value and the iPoint Inventory Asset Value.
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Next, an example of what happens to asset values when you’re syncing as non-inventory
With this, your COGS is equal to the products you’ve purchased plus the difference between the QB Asset Value and the iPoint Asset Value.
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Here is an example where you deliver more than you purchase in a month to help illustrate this:
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Starting point
iPoint Asset = $100,000
QB Asset = $100,000
QB COGS = $0
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Purchase $10,000 in products
iPoint Asset = $110,000($100,000 + $10,000)
QB Asset = $100,000
COGS = $10,000($0 + $10,000)
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Deliver $25,000 in products to customers
iPoint Asset = $85,000 ($110,000 – $25,000)
QB Asset = $100,000
COGS = $10,000
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Do Month-End Journal entry of $15,000 (QB Asset – iPoint Asset. $100,000 – $85,000)
iPoint Asset = $85,000
QB Asset = $85,000 ($100,000 – $15,000)
COGS = $25,000 ($10,000 + $15,000)
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Here is an example where you deliver less than you purchase in a month:
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Starting point
iPoint Asset = $100,000
QB Asset = $100,000
QB COGS = $0
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Purchase $10,000 in products
iPoint Asset = $110,000 ($100,000 + $10,000)
QB Asset = $100,000
COGS = $10,000 ($0 + $10,000)
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Deliver $5,000 in products to customers
iPoint Asset = $105,000 ($110,000 – $5,000)
QB Asset = $100,000
COGS = $10,000
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Do Month-End Journal entry of -$5,000 (QB Asset – iPoint Asset. $100,000 – $105,000)
iPoint Asset = $105,000
QB Asset = $105,000 ($100,000 – (-$5,000) )
COGS = $5,000 ($10,000 + (-$5,000) )
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Finally, let’s look at what is different if you sync as inventory
This is how the accounts are impacted when syncing items as inventory.
Here is an example where you deliver more than you purchase in a month to help illustrate this:
Starting point
iPoint Asset = $100,000
QB Asset = $100,000
QB COGS = $0
Purchase $10,000 in products in iPoint (PO Received)
iPoint Asset = $110,000 ($100,000 + $10,000)
QB Asset = $100,000
QB COGS = $0
Sync POs to QB
iPoint Asset = $110,000
QB Asset = $110,000 ($100,000 + $10,000)
QB Cogs = $0
Deliver $25,000 in products to customers
iPoint Asset = $85,000 ($110,000 – $25,000)
QB Asset = $110,000
QB Cogs = $0
Sync Delivery Invoice to QB
iPoint Asset = $85,000
QB Asset = $85,000 ($110,000 – $25,000)
COGS = $25,000
Note: At Month-End, because you’re tracking inventory in QB, you don’t need to do a journal entry. Instead, you need to push any manual stock transactions to QB. You might be wondering why you would have a manual stock transaction – whelp, it happens! Maybe your warehouse manager found a device hidden behind a box or a technician had a couple of extra parts on his van that he didn’t return to the warehouse and they weren’t accounted for. When those are manually added back to iPoint, that information needs to get to QB. Many of our community members have an account in QB specifically to capture these kinds of transactions – that way, they can easily see how much product is being manually adjusted or they just use their standard inventory COGS account – the choice is yours! In the example below, we found an additional $3,000 worth of products that were manually added to iPoint.
To see the process of syncing these manual transactions, click here
Manual Inventory Adjustment in iPoint
iPoint Asset = $88,000 ($85,000 + $3,000)
QB Asset = $85,000
COGS = $25,000 OR Inventory Adjustment = $0
Push Manual Stock Adjustments to QB
iPoint Asset = $88,000
QB Asset = $88,000 ($85,000 + $3,000)
COGS = $25,000 ($25,000 + $3,000) OR Inventory Adjustment = $3,000 ($0 + $3,000)
Here is an example where you deliver less than you purchase in a month:
Starting point
iPoint Asset = $100,000
QB Asset = $100,000
QB COGS = $0
Purchase $10,000 in products in iPoint (POs Received)
iPoint Asset = $110,000 ($100,000 + $10,000)
QB Asset = $100,000
COGS = $0
Sync POs to QB
iPoint Asset = $110,000
QB Asset = $110,000 ($100,000 + $10,000)
COGS = $10,000 ($0 + $10,000)
Deliver $5,000 in products to customers
iPoint Asset = $105,000 ($110,000 – $5,000)
QB Asset = $110,000
COGS = $10,000
Sync Delivery Invoices to QB
iPoint Asset = $105,000
QB Asset = $105,000 ($110,000 – $5,000)
COGS = $5,000 ($10,000 – $5,000)
Note: At Month-End, because you’re tracking inventory in QB, you don’t need to do a journal entry. Insteady, you need to push any manual stock transactions to QB. You might be wondering why you would have a manual stock transaction – whelp, it happens! Maybe your warehouse manager found a device hidden behind a box or a technician had a couple of extra parts on his van that he didn’t return to the warehouse and they weren’t accounted for. When those are manually added back to iPoint, that information needs to get to QB. Many of our community members have an account in QB specifically to capture these kinds of transactions – that way, they can easily see how much product is being manually adjusted or they just use their standard inventory COGS account – the choice is yours! In the example below, we found an additional $3,000 worth of products that were manually added to iPoint.
To see the process of syncing these manual transactions, click here
Manual Inventory Adjustment in iPoint
iPoint Asset = $108,000 ($85,000 + $3,000)
QB Asset = $105,000
COGS = $5,000 OR Inventory Adjustment = $0
Push Manual Stock Adjustments to QB
iPoint Asset = $108,000
QB Asset = $108,000 ($105,000 + $3,000)
COGS = $8,000 ($5,000 + $3,000) OR Inventory Adjustment = $3,000 ($0 + $3,000)