Quickbooks Online Integration
Once DEAR Inventory and Quickbooks Online are connected, DEAR Inventory will become the central point of all inventory management within your business. This means that all inventory-related purchases, sales, and manufacturing will be performed in DEAR Inventory and then synchronised over to Quickbooks Online.
A Video Tutorial is available here:- QBO
WARNING: The choice to integrate with Xero, QBO or to use DEAR Inventory as a standalone service must be made when you create your account.
- Changing from QBO to Xero as your accounting system or vice versa requires a completely different DEAR Inventory Account
Changing from one Xero account to another Xero account (or QBO account to QBO account) requires a complete data wipe - contact DEAR support to know more.
- Changing from Dear standalone to a QBO or Xero account requires a complete data wipe - contact DEAR support to know more.
DEAR Inventory DOES support integrating with:
- Quickbooks Online Essentials
- Quickbooks Online Plus
DEAR Inventory DOES NOT support integrating with:
- Quickbooks Desktop
- Quickbooks Online SimpleStart
- Quickbooks Online Edition (QBOE)
If you have recently updated from a legacy product or you're unsure of the version of Quickbooks you operate, you should get in contact with DEAR Systems by emailing email@example.com.
- Steps in QuickBooks Online
- Steps in DEAR Inventory
- Integration Settings
- Troubleshooting/Common Errors
Steps in QuickBooks Online
Before commencing the integration process, a number of accounts will have to be created in Quickbooks Online. You will need to create the following accounts:
- Accounts Receivable
- Accounts Payable
- Supplies and Materials - COGS
- Revenue Account
- Sales Tax Payable.
To create new accounts in QBO:
- In QBO, navigate to your company and select Chart of Accounts. The Chart of Accounts will be loaded based on the industry that you specified when initially setting up Quickbooks Online and you may find that some of the accounts may already be present. Make sure there is an account for each of the ones listed above.
Click the New button, select the category that the new account would belong to, and then select the specific account to be added.
Once you have added all the relevant accounts, you're ready to begin the integration to DEAR Inventory.
Steps in DEAR Inventory
To connect DEAR Inventory and QBO:
- When creating your DEAR Inventory account or free trial account, select QBO as your accounting system. Follow the link in the activation email sent to you. You will be redirected back to DEAR Inventory and asked to choose a password.
- Go to Integrations -> QBO
- Click Connect to Quickbooks to be taken to the QBO log in screen.
- Log in to QBO. You will be prompted to let DEAR Inventory access your data and redirected back to DEAR.
- You will be directed to the QBO synchronisation screen. Follow the link to Account Mapping and check that all your QBO accounts have been correctly mapped. If you receive a synchronisation error, check that all the accounts have been set up correctly in Xero as shown above.
Once your DEAR Inventory account is set up, you'll be able to locate the Quickbooks Online Integration page by navigating to the Integration module and selecting Quickbooks Online.
The Quickbooks Online Integration page will contain the details of the integration in the page header and it explains the flow of data between DEAR Inventory and Quickbooks Online.
Created in Quickbooks, sent to DEAR
- Chart of Accounts, Tax Rules and Payment Terms
Created in DEAR, sent to Quickbooks
- Purchase Orders (Optional send to QBO)
- Bills or Purchase Invoices
- Purchase Credit Notes
- Sale Quotes/Estimates (Optional send to QBO)
- Sale Invoices
- Credit Memos and Sale Credit Notes
Can be created in both, synced both ways.
- Any Bill/Sale/Purchase Payments or Refunds
- Products/Items - creating inventory in QBO and DEAR can cause inventory tracking issues, see here.
Within the Quickbooks Online Integration page, you are able to control whether your integration is enabled or disabled. You can authorise your Quickbooks Online connection. You can also choose whether to export purchase orders and sale quotes to Quickbooks Online.
Duplication of COGS entries
The specifics of QBO inventory is if you turn on inventory tracking for the item and create transactions with this item in QBO, COGS entries will be created by QBO using some previously recorded amounts (presumably average cost) even if global settings are set to not track item quantity. This may cause duplication of COGS as DEAR will also send the COGS entries for the same transaction as QBO.
- Intuit suggest creating new items without inventory tracking (this would be obvious if global setting is turned off). Depending on the volume of your inventory we can suggest delete item with quantity tracking turned on and create new item with EXACTLY THE SAME NAME without tracking.
You should also note the product quantity tracking will not be updated from DEAR Inventory to Quickbooks Online.
DEAR Inventory will automatically post journal entries based on the processed transactions and will require the Chart of Accounts to be imported from Quickbooks Online.
Inactive Products in QBO appearing in DEAR
Making a product inactive in QBO will NOT deprecate nor delete the product in Dear.
To make the product inactive in DEAR:
- In DEAR, Go to Inventory -> Products -> View All
Change the product status from Active to Deprecated
- This can also be done in bulk, see Product Management
- To Delete, on the View All screen click More -> Delete Deprecated Products
Stale Object Error
Stale Object Error : You and System Administration were working on this at the same time. System Administration finished before you did, so your work was not saved.
This error comes from Quickbooks online for the reason indicated. There are two ways to solve the error:
- Make a change to the customer and run synchronisation again.
- Change the Status of the transaction from Failed to Skipped to skip the synchronisation.
Syncing Sale COGS "Pending"
Pending COGS Sale entry won't sync
Reason 1: User has changed chart of accounts in the accounting system without syncing all DEAR transactions first.
Solution: If you made changes to the chart of accounts recently you need to tell us how to remap them back to the old account codes in DEAR. Email DEAR support at firstname.lastname@example.org
Reason 2: COGS transaction = 0 (for example if the purchase invoice for the items has not been authorised, or the cost of the items was set 0 during stock adjustment or stocktake).
Solution: Assign value to the stock by authorising purchase invoice or other relevant transaction.
To investigate this issue you might find it useful to use 'Movements' tab on the Product screen.
Duplicate COGS entries posted in QBO with Quantity Tracking turned off
My Quantity tracking in QBO is turned off however there are still duplicate COGS entries posted in QBO
The inventory type products previously tracked in QBO remain tracked even after the tracking is turned off. In order to rectify the issue, the old products need to be deleted and new products created.
To delete the QBO products:
- Navigate to the product list in QBO and make all products either inactive, deleted or non-inventory
- Once this is done please let us know so we can unlink the QBO catalog on the back end). Do NOT re-sync with QBO until you hear back from us.
The COGS transactions that you see posted as part of the invoice are QBO generated and need to be fixed manually. The easiest way is to create a reversing manual journal for such items.
What will happen when you delete all products from QBO:
We will re-set your product export with QBO so that all current products in DEAR will be re-exported to QBO on your next sync.
To avoid any issues:
- First check that all your QBO products are currently in DEAR.
- Delete all products in QBO.
- When you delete products in QBO it is automatically renamed and this will allow you to recreate another product with the same name.
- All products in DEAR will be recreated in QBO by DEAR when we give you the go ahead to re-sync.