The iPoint software is, among other things, a project management tool, and as such, there is limited financial reporting that takes place in the program. The majority of the reports run in iPoint deal with Project Accounting, telling you about the financial health of the jobs you run. To get a full picture of your business’ health, we rely on QuickBooks to do financial reporting.
iPoint shares customer, vendor, and item data with QuickBooks, which has no impact on the financial aspects of your business. iPoint also synchronizes transactions to QuickBooks. However, these transactions are only a part of your financial statements. So let’s take a look at the transactions you create in iPoint and understand how they affect the QuickBooks financials.
Key:
- Because credits and debits are sometimes confusing, we’ll tell you if this Increases or Decreases an account value by displaying it in parenthesis.
- [ We’ll state the type of account and which financial statement in brackets ]
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Purchase Orders
A purchase order is a document stating that documents your agreement to pay a vendor for specific goods at a specific price. A purchase order itself has no impact on your financial statements other than an indication of an upcoming liability. The transaction authorized by a PO results in two financial transactions.
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Item Receipts – This is completed on a purchase order in iPoint and increases the number of items you have in inventory. Here’s what happens in QuickBooks.
- Debit (Increase) Inventory [ Asset – Balance Sheet ]
- Credit (Increase) Accounts Payable [ Liability – Balance Sheet ]
Accounts Payable – When you buy stuff, you have to pay for it! Vendors will typically send you an invoice for the goods they sold you. Those invoices are matched up with Purchase Orders to ensure that you are getting what you ordered and for the amount you agreed on. The actual payables are entered directly in QuickBooks and are matched against the Item Receipts that came from iPoint.
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Invoices
Invoices are the way you collect money from customers for the goods and services you provide. These can take on many different forms, and each invoice type affects the financials a bit differently. So let’s take a few minutes to review what happens with each type of invoice when it is pushed to QuickBooks.
Line Item Invoice
- Debit (Increase) Accounts Receivable [ Asset on the Balance Sheet ]
- Credit (Decrease) Inventory [ Asset on the Balance Sheet ]
- Credit (Increase) Sales Tax Payable [ Liability on the Balance Sheet ]
- Debit (Increase) Cost of Goods Sold [ Income Statement (P&L) ]
- Credit (Increase) Income [ Income Statement (P&L) ]
Summary Invoice
- Debit (Increase) Accounts Receivable [ Asset on the Balance Sheet ]
- Credit (Increase) Sales Tax Payable [ Liability on the Balance Sheet ]
- Credit (Increase) Sales [ Income Statement (P&L) ]
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Request for Payment – Liability
- Debit (Increase) Accounts Receivable [ Asset on the Balance Sheet ]
- Credit (Increase) Customer Deposit [ Liability on the Balance Sheet ]
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Then when the payment is pushed
- Debit (increase) Bank Account [ Asset on the Balance Sheet ]
- Credit (decrease) Accounts Receivable [ Asset on the Balance Sheet ]
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NOTE: The Best Practice is to only push Requests for Payment once they are paid in full. Otherwise, your Accounts Receivable can appear doubled when the related Delivery Invoices are synced. If you do this practice, the GL movement is as follows:
- Debit (Increase) Bank Account [ Asset on the Balance Sheet ]
- Credit (Increase) Customer Deposit account [ Liability on the Balance Sheet ]
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Request for Payment – Accounts Receivable
- RFPs push as an estimate to QuickBooks, so no financial impact occurs
RFP Delivery Invoices
- Debit (Increase) Accounts Receivable [ Asset on the Balance Sheet ]
- Credit (Decrease) Inventory [ Asset on the Balance Sheet ]
- Credit (Increase) Sales Tax Payable [ Liability on the Balance Sheet ]
- Debit (Increase) COGS [ Income Statement (P&L) ]
- Credit (Increase) Income [ Income Statement (P&L) ]
- Credit (Increase Expense (Labor) [ Income Statement (P&L) ]
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Inventory Adjustments
You may be wondering how inventory adjustments impact QB Desktop if you’re syncing as Inventory or Non-Inventory, well, you’re in luck! Click here to check out the details!
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Item count in iPoint is higher than Item count in QuickBooks
- Debit (Increase) Inventory Asset [ Asset on the Balance Sheet ]
- Credit (Decrease) Cost of Goods Sold [ Income Statment (P&L) ]
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Item count in iPoint is lower than the Item count in QuickBooks
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- Debit (Increase) Cost of Goods Sold [ Income Statment (P&L) ]
- Credit (Decrease) Inventory Asset [ Asset on the Balance Sheet ]
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Payments
Making money is why you are in business, right? And payments are how we recognize that transfer of money from customers to your bank account. So you will take all your payments directly in iPoint and apply them to the various invoices you’ve created. Then all of that information syncs over to QuickBooks and where it impacts the financials of your company.
On very rare occasions, you might receive payments directly in QuickBooks instead of in iPoint. But those payments can be synced back into iPoint so your records are all intact.