This is a one hour overview of using inventory in QuickBooks Point of Sale.  Here is the link:

https://intuit.webex.com/intuit/lsr.php?AT=pb&SP=EC&rID=40352247&rKey=11ebe32dcb5596db

Enjoy

While POS is a great program, it really shines as a complete system when used with QuickBooks Financial Accounting Software (QBF).  Here is how the 2 talk to each other.  BTW, this assumes you are using summary posting, which is what we recommend.  Detail posting just clutters up  your item list and creates more work depositing funds.  The following assumes a standard set up.

Each time you send data over to QBF, it will update any vendor information you have changed in either program.  Additionally, if you are set to synch customers, it will update any changes between the two.

POS will create a single sales receipt for the total of the day’s cash and credit card sales.  It will also create a sales receipt for each check received.  The net cash that POS registered will be sent to an account called cash in drawer.  Even if you show a shortage in your Z-out drawer count, you still need to adjust QBF’s cash in drawer account.

Additionally, POS will create a journal entry increasing the cost of goods account and decreasing inventory.  This is why it is so important to receive merchandise correctly.  Speaking of that, any completed receiving vouchers will be sent over to POS as entire an Item receipt or a bill depending on preference settings.

POS working hand in hand with QBF is a thing of beauty, but as my wife tells me, I need to get out more.

If you deal with a lot of cash sales, you will have to figure out a way to track when cash is pulled out of the drawer.  Create an other current asset account in QuickBooks Financial called Cash Drop.  When the cash is pulled from the drawer, code the amount to this account and in the comments put who pulled the cash.  During your z-out report, you will see a list of payouts that will include these amounts.  Count your cash from the drawer.  That plus the paid outs will equal the cash for the day.  In QuickBooks Financial, when you make your deposit of cash, it will have 2 parts.  The net cash from the transfer and then the amount from the Cash drop account will equal your deposit

A question that we get quite a bit is how to track items that we pull out of inventory to use.  It really depends on your sales tax codes.  There are 2 ways to do this.  The first way is to do a qty adjustment and then when it gets posted to QBF, change the journal entry that was created to shop supplies.  You will have track the amount taken and usually pay some sort of use tax.  The easier solution if allowed is to sell the item to yourself at cost (collecting the tax) and use the payment on account.  In QBF, discount the invoice to your supplies expense.  With this method, no need to track use tax as you collected the tax when you sold it to yourself.

Being the start of a new year and all, a lot of you are thinking about doing inventory.  The first step in a successful inventory is to buy or rent the POS inventory scanner.  Yes we do sell them, but that is not why I am telling you to get the scanner.  The scanner turns the inventory process from days to a few hours.  Next, in Version 6 and new, click on inventory and start phyiscal inventory. find a expected item with zero and put a 0 in the counted field.  Then save the change.  It will start the inventory process and ensure that anything gets sold or received will be flagged. Then scan or count your inventory making sure not to double count anything. If you are using the scanner, upload the counts, review the scans and save them.  After you are sure that you have counted everything, check the set everything not counted to zero box. and apply changes.  If the inventory was taken over a period of time, then you may need to adjust for items sold after being counted.  To do so, look for the flags next to the items change.  Then review your receiving or sales history and make the necessary adjustment.  When you are all done, apply changes and wait for your next inventory.

Typically when a new business starts up, vendors require payment in advance for items ordered.  When using QuickBooks POS with QuickBooks Financial software, there is a relatively easy way to track this.  When posting your check or charge in QuickBooks Financial, enter accounts payable in the account field and the vendor you placed the order with in the customer job field.  Then receive your inventory on a receiving voucher as normal (you are using receiving vouchers right?)  When you go to QBF, click on pay bills. Find the bill and check it.  Then click on the set credit button and apply the credit. We don’t recommend checking the already paid for box in POS, because that creates an item receipt that needs to be turned into a bill before processing.  Another good reason for doing this is if the vendor charged you more than you received, you will see that and can call for an explaination.