Editing GL Entries for SME Inventory

Inventory items can be maintained solely in SME and this setting is only for items maintained in SME, not for items in both SME and QuickBooks.  This approach uses journal entries to keep QuickBooks Accounting up to date financially while SME tracks inventory counts. 

<br>To configure SME to correctly record the inventory accounting transactions in QuickBooks you must set the correct options in SQLink. Set the '''Use General Ledger entries for Default Material Item''' as shown in the image below. With this setting, SQLink will create General Ledger Account entries in QuickBooks when items are received on SME Purchase Orders (Debit Inventory Asset / Credit Accounts Payable) and when you invoice material in SME (Credit inventory Asset / Debit Cost of Goods Sold). These settings require that the default material item must be a Non-Inventory item. You can use the default established when SME/SQLink is installed, or you can set up an item of your own choosing, but it must be a Non-Inventory item.

<br>Using this option applies only if you keep your inventory items in SME only, not in both SME and QuickBooks.

<br>[[File:UseGeneralLedgerOption.png]]


== Setup ==

<h3>Setup your default Inventory Asset and COGS Account</h3>
1. Open SQLink
<br>2. Click '''File''' > '''Setup'''
<br>3. Click the '''Classes and Accounts Options''' tab
<br>4. Click '''Edit''' at the bottom
<br>5. Set your '''Default Inventory Asset Account''' and''' Default COGS Account'''
<br>[[File:SetDefaultCOGSAndAssetAccounts.png]]

<h3>Setup your Default Material Line Item</h3>
1. In SQLink, click the '''Invoice/ Proposal Options''' tab
<br>2. Locate the '''Default Material Line Item''' field. The item set in that field by default is a non-inventory item called “SMP_Item”. You can leave that item or set another non-inventory item you already have setup, however the item must be a Non-Inventory item.
<br>[[File:SetDefaultMaterialLineItemSQLInk.png]]

<h3>Set Income Account on your Default Material Line Item</h3>
If you keep SMP_Item as your Default Material Line Item you will need to set the income account on SMP_Item in QuickBooks.
<br>'''Note''': Do NOT check "This item is used in assemblies or is purchased for a specific customer/job"
<br>1. Open QuickBooks
<br>2. Click '''Lists''' > '''Item List'''
<br>3. Look for '''SMP_Item''' and open the item.
<br>4. Set the Income account in the '''Account''' field (image below). 
<br>5. Make sure you keep the item as a '''non-inventory part'''. Do not change this.
<br>[[File:SMPItem_SetIncomeAccount.png]]

<h3>Setup your Purchase Order Options in SME and SQLink</h3>
1. In SME, go to the '''Setup''' module > '''Company''' > '''Order'''
<br>2. Click '''Edit'''
<br>3. Check '''Default Export Bills on POs''' (Image below)
<br>4. Click '''Save'''.
<br>[[File:DefaultExportBillsOnPOs_SMESETUP.png]]

<br>SQLink PO Bill Settings:
<br> 1. In SQLink, click '''File''' > '''Setup'''
<br>2. Click '''Edit''' at the bottom
<br>3. In the '''Purchase Order Options''' section, check '''Export Bills Only''' (image below)
<br>4. Click '''Save'''
<br>[[File:SQLINK_OnExportExportBillsOnly.png]]

<br>To see how Bills for POs export to QuickBooks, view the video at this link:
<br>http://high5software.com/mediawiki/index.php?title=Default_Export_to_QuickBooks_Settings#Export_Options_for_Purchase_Orders


<h3>Set Purchase Orders Settings in SQLink </h3>
1. In SQLink, click '''File''' > '''Setup'''
<br>2. Click '''Edit''' at the bottom
<br>3. Check '''Include SMP Items on Purchase Orders''' (image below)
<br>4. Click '''Save'''
<br>[[File:IncludeSMPOnPO_GLSettings.png]]

<h3>Set if you want the COGS entry to be made on the invoice date or the date the material was added to the invoice</h3>
<br>[[File:COGSDate_GLENtriesSetting.png]]

<br>If Base COGS on Date of Invoice is unchecked, then the date on the COGS entry in QuickBooks will be the date the material was added to the order or itemized invoice. (image below)
<br>[[File:BaseCOGSOnDateOfInvoice_UNCHECKED.png]]

<br>If Base COGS on Date of Invoice is checked, then the date on the COGS entry in QuickBooks will be the invoice date, not the date the material was added to the service order or itemized invoice/
<br>In the image below, the material was added to the order on 5/29 and the order was invoiced on 6/5. The COGS entry is using the Invoice Date.
<br>[[File:BaseCogsOnDateOfInvoice_CHECKED.png]]

== Purchase Order for Inventory and Non-Inventory Items ==
If you create a PO in SME, the PO will be in SME only.
Receive an item on the PO and on your next sync, a bill will go to QB for the item you received. The image below shows the bill in QuickBooks for the SME Purchase Order #4128.
<br>[[File:QB_BillForItemsReceivedOnPo.png]]
<br> The following entries are made in QB from the Bill:
<br>[[File:GLENtriesone.png]]
<br>A Credit was made to Accounts Payable account and a Debit made to the Inventory Asset account as shown in the report below.
<br>[[File:QBAccount_Bill.png]]

== Invoice for the Inventory Item - GL Entries ==
Invoice the material in SME. On your next sync, the invoice will sync to QB (image below)
<br>[[File:QBInvoiceForMaterial.png]]

<br>The following GL entries are made in QuickBooks:
<br>[[File:MaterialInvoiceGL.png]]
<br>A Credit was made to the Inventory Asset account and a Debit made to the Cost of Goods Sold account as shown in the report below. 
<br>[[File:InvoiceGL.png]]

== Voiding or Reexporting an Invoice in SME ==
The COGS and Inventory Asset entries go over to QuickBooks when the invoice is synced from SME to QuickBooks.
<br>For SQLink versions of 8.0.3.7 or higher:
<br>- If you Void the invoice in SME and then do a full sync, the COGS and Inventory Asset entries will be cleared in QuickBooks.
<br>- When you re invoice the order in SME, the COGS and Inventory Asset entries will be entered in QuickBooks.

<br>- If you re-export an invoice from SME to QB, the original GL Entries will be cleared and recreated.



== To Convert from syncing items to journal/GL entry ==
If you are an existing SME customer syncing SME items with QB items, you can run the following script to "disconnect" SME items from QB item.
Note: USE WITH CAUTION, Run backups prior, should be ONLY done by qualified database administrators or SME support.



Run these queries:

Select UID, Name, InventoryID, IsActive From Inventory Where Name Like 'SMP_Item%' and IsActive = 1; 
 
-- Put the QB Item InventoryID in the Where and run the query.  
 
Disable Trigger All on Inventory;  
Update Inventory  
Set QBExport = 'false',  
QBInventory = 'false',  
QBModified = NULL,  
QBItem = 'false',  
InventoryID = '' 
Where  
Name Not Like 'SMP_Item%'; --- or whatever your default item is named Enable Trigger All on Inventory;