DEAR Inventory is integrated with Accounting Software such as XERO and QuickBooks Online (QBO).
Below is an explanation on how Chart of Accounts (COA) works in integration with Xero and QuickBooks Online:
1. Ensure that the COA has the necessary accounts for Tracking Inventory:
- Inventory Account
- Cost of Goods Sold Account
If you do NOT have these following accounts simply add them to COA within your accounting application.
* Other necessary accounts that are usually in the accounting system automatically are:
-Accounts Receivable (A/R)
-Accounts Payable (A/P)
-Sales Tax, GST, VAT
2. Run Synchronization from your DEAR account in order to import COA from the Accounting System. Integration > Accounting > Xero/QuickBooks
3. Map Accounts in DEAR:
Settings > Settings and Reference Books > Financial > Account Mapping
* This allows DEAR to create transactions using correct accounts from the Accounting System.
4. DEAR allows you to create or update products with inventory control, revenue and COGS.
* This allows a revenue analysis to occur at product level. You can have entries posted for products to their own specific COA to better structure your reports.
After creating new products in DEAR we are now able to purchase them.
Purchase > New Purchase
*Please note, that despite the fact that we have a default account set at 140: Inventory – it will be overridden by newly assigned accounts 141: Inventory2.
* When selling the items (Sale > New Sale) we will also get new Sales Accounts for each product.
DEAR allows changing accounts from default for each transaction. This allows users to design effective COA needed for successful analysis and managerial decisions.