Quicken & Other Budget/Accounting Software/Using a POS system with Quickbooks
I own and operate a small business. To this point I've always tracked every sale and purchase of inventory on QuickBooks. Now I am in the process of getting a POS system online and it will be tracking all my inventory and purchases.
So, using QuickBooks from this point forward how would you suggest I input purchase orders without entering every single item?
Can I make general entries like: Freight, Inventory and on?
Can I assume that the POS will track your inventory values so you will be
posting your Item receipts and costs into that system?
First, why bother with a purchase order (PO)if you do not need to track items in QB. Certainly if you want to track the fact that the order was placed and the cost of each item a PO should be created. Many POS systems include tracking POs as a feature. If so, then only post your
PO to the POS system.
If you are going to use a PO in QB, then use generic non-inventory items
For example set up an item called "products for resale" and point that item to the
chart of accounts - "inventory asset".
You can then use that generic non-inventory item on PO's.
However, if you are tracking POs in the POS system, then skip the PO and just enter a
bill in QB for each delivery on the day the goods arrive. Be sure to post the bill with the same date you are receiving the items into the POS system. Use the expense tab, not the item tab and post the bill to Inventory. If you POS system allocates freight into inventory, then you would post the freight to inventory as well, if not, split the bill and allocate the products to inventory and the freight to freight expense.
At the end of the month you will need to adjust your QuickBooks inventory balance to the value of inventory on the last day of the month. I recommend on the 1st of each month, before any
sales are entered, and AFTER all item receipts through the 31st have been received into the POS system, and AFTER all Bills have been entered into QuickBooks for items received through the 31st to print the inventory valuation report to PDF from the POS system. Then in QuickBooks make a Journal entry # company menu > make Journal entry# to adjust your balance to the balance in the POS.
Hope this helps,
Linda Saltz, CPA
Advance Certified QuickBooks Advisor
We sell and support QuickBooks Enterprise