QuickBooks Journal Entries

From Fishbowl Inventory

Jump to: navigation, search

If you are integrating Fishbowl with QuickBooks, it is necessary to know what accounts are being affected in QuickBooks each time you export from Fishbowl. Invoices, Bills, Credit Memos, and Inventory Adjustments will be created in QuickBooks depending on the function completed in Fishbowl. In addition, Fishbowl must also modify the accounts associated with these functions. These accounts may range from Cost Of Goods Sold, Sales Retail, Inventory Asset, and Accounts Receivable to name a few. The information shown below provides detailed descriptions of each function and how completing this function in Fishbowl affects the accounting aspect in QuickBooks. Please note, however, that the below information is given using the standard Fishbowl created accounts in QuickBooks. If you have mapped Fishbowl to different accounts than the default settings, your accounting results may vary slightly from the information given on these pages. See the Accounting Module for more information about the QuickBooks integration.

Contents

Debits and Credits
Jump to top of page

Debits and credits are a system of notation used in accounting to keep track of money movements (transactions) into and out of an account. Traditionally, an account's transactions are recorded in two columns of numbers: debits in the left hand column, credits in the right. Keeping the debits and credits in separate columns allows each to be recorded and totaled independently. The smaller of the two totals is then subtracted from the larger to give the account balance. An account may thus have a balance either the debit or credit side.

In double-entry bookkeeping, assets and expense accounts are debit accounts. Their balance increases with entries made in the debit column and decreases with entries in the credit column. Liability, owner's equity, and revenue or income accounts, are credit accounts. Their balance increases with entries in the credit column and decreases with entries in the debit column.

Each transaction within Fishbowl consists of debits and credits; for every debit transaction the credit must be equal. Every Transaction Value of Debits = Value of Credits. This means when exporting to QuickBooks, the total value of debits will equal the total value of credits.

The extended accounting equation is true and must balance:

On a T-Chart, debits are on the left and credits are on the right. Debits increase a debit account and reduce a credit account. Credits increase a credit account and decrease a debit account.

T Charts
Jump to top of page

The term T Chart (or T account), derived from the distinctive T shape, is mainly used when discussing or analyzing accounting or business transactions. T accounts are used to represent general ledger accounts. A general ledger account name or number is written above each T, with debit entries recorded on the left side of the T, and credit entries recorded on the right side of the T.

The goal of T accounts is for debit entries to equal credit entries. Or, in other words, for total assets to equal total liabilities and equity. For every adjustment made to the left side of a T, there must be one or more adjustments made to the right side of the T so that the net entries balance.

T accounts allow you to visualize how the debits and credits of a particular entry work and how they impact the financial statements. T charts work well because they are visually effective and simple to understand.

The following image is a T-Chart example of the Sales Order Accounting Process in QuickBooks:

Fulfilling a SO paid for in FB.JPG

Inventory Adjustments
Jump to top of page

Cycle Count Adjustment: Increasing Inventory

When inventory has been increased via cycle count, the Inventory Asset account will be debited with the offset Inventory Adjustment account credited.

T chart inventory increase.PNG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when an item's inventory is increased via Cycle Count and then exported to QuickBooks.

As seen below, item B203 had a cycle count adjustment. A debit of $75 was made to the Inventory Asset account with a Credit made to the Inventory Adjustment account.

Cycle count up TDBA.JPG

The following Journal Entry shows the accounts affected when Inventory is increased via Cycle Count within Fishbowl Inventory:

Inventory increase Journal Entry.JPG

Cycle Count Adjustment: Decreasing Inventory

When Cycle Counting Down inventory, a debit will be made to the Inventory Adjustment, with the offset credit made to the Inventory Asset account.

T chart decrease inventory.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when inventory is decreased in Fishbowl via cycle count and then exported to QuickBooks:

TDBA inventory decrease.JPG

The following QuickBooks General Journal Entry shows the debit and credit accounts affected when inventory is decreased in Fishbowl via cycle count and then exported to QuickBooks.

JE inventory decrease.JPG

Scrapping Inventory

When Scrapping inventory, a debit will be made to the Scrapped Inventory account, with an offset credit made to the Inventory Asset account.

Scrapped inventory.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when an item's inventory is scrapped and then exported to QuickBooks.

As seen below, this Fishbowl item was scrapped. A credit of $140 was made to the Inventory Asset account with a debit of $140 made to the Scrapped Inventory account.

TDBA scrap inventory.JPG

The following General Journal Entry from QuickBooks shows the debit and credit accounts affected when an item's inventory is scrapped and then exported to QuickBooks.

JE scrap inventory.JPG

Adding Initial Inventory

When inventory has been initially entered and then exported to QuickBooks, the Inventory Asset account will be debited, with the offset Inventory Adjustment account credited.

Adding Initial Inventory.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when an item's inventory is initially added and then exported to QuickBooks.

As seen below, a Fishbowl item had initial inventory added. A debit of $54.83 was made to the Inventory Asset account with a Credit of $54.83 made to the Inventory Adjustment account.

TDBA add initial inventory.JPG

The following QuickBooks General Journal Entry shows the debit and credit accounts affected when initial inventory is added in Fishbowl and then exported to QuickBooks.

JE add initial inventory.JPG

Sales Order
Jump to top of page

Standard Inventory items

For a standard Sales Order with regular inventory items (not including a shipping line item) the following process takes place when exporting a fulfilled order to QuickBooks:

Orders not paid for in Fishbowl: Upon exporting your fulfilled Sales Order, an Invoice will be created in QuickBooks for the Sales Order. (The following information is given for a fulfilled Sales Order that has not been already paid for in Fishbowl) A Sales Adjustment (showing your total sale) will be credited, and a debit made to your Accounts Receivable will offset your Sales adjustment. Your Inventory Asset will credit, and will be offset by a debit to the Cost of Goods Sold. Please see the following image:

Completing a sales order.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when the Fulfilled Sales Order is exported from Fishbowl:

Transaction Detail by Account SO not paid.JPG

The following image provides an Invoice from QuickBooks showing Standard Inventory Items. The report has been customized to show the Number and UOM of the product.

SO QB Invoice.JPG

The following General Journal Entry from QuickBooks shows the debit and credit accounts affected when a Sales Order is exported from Fishbowl that has not been paid for in Fishbowl.

JE SO not paid for in FB.JPG

Orders paid for in Fishbowl: The following information is now given for a fulfilled Sales Order that has been paid for in full in Fishbowl prior to exporting to QuickBooks. Upon exporting your fulfilled Sales Order, a Sales Receipt will be created in QuickBooks for the Sales Order. A Sales Adjustment (showing your total sale) will be credited, and a debit made to your Undeposited Funds will offset your Sales adjustment. Your Inventory Asset will credit, and will be offset by a debit to the Cost of Goods Sold. Please see the following image:

Fulfilling a SO paid for in FB.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when the Fulfilled Sales Order is exported from Fishbowl:

Transaction Detail by Account paid SO.JPG

The following image provides a Sales Receipt from QuickBooks showing Standard Inventory Items that have previously been paid for in Fishbowl.

QB Standard Inventory Sales Receipt.JPG

The following Journal Entry shows the accounts affected when a Sales Order is created and paid for in Fishbowl, then exported to QuickBooks:

JE SO paid for in FB.JPG

Non-Inventory Items

The following debits and credits are recorded when exporting a Sales Order with non-inventory items to QuickBooks:

Non-Inventory Items.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a Sales Order with a non-inventory item is exported from Fishbowl.

TDBA non-inventory item.png

Service Items

Upon exporting your Sales Order (containing a Service Item) from Fishbowl, an Invoice will be created in QuickBooks. Your Service item will affect QuickBooks accounts in the following ways: A credit will be made to the Sales Retail account, and is offset by a Debit made to the Accounts Receivable. Please note the following image:

T chart Service items.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a Sales Order with a service item is exported from Fishbowl.

As seen below, Sales Order #15 had 1 service item described as a Paint Job. A credit was made to the Sales Retail account with an offset debit made to the Accounts Receivable.

TDBA service item.JPG

The following image provides an Invoice view of this service item. The report has been customized to show the Number and UOM of the product.

QB Invoice Service items.JPG

Discount Items

Upon exporting your Sales Order (containing a Discount Item) from Fishbowl, an Invoice will be created in QuickBooks. Your Discount item will affect QuickBooks accounts in the following ways: A credit will be made to the Sales Retail account, while a debit is made to the Discount Expense account. Please note the following image:

T chart discount items.JPG

The QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a Sales Order with a discount item is exported from Fishbowl.

As seen below, item B202 and a 10% discount are placed on Sales Order #50030. A credit was made to the Sales Retail account with an offset debit made to the Discount Expense.

TDBA discount item.JPG

The following image provides an Invoice view of this discount item. The report has been customized to show the Number and UOM of the product.

Invoice discount item.JPG

Credit Return

Upon exporting your credit return Sales Order from Fishbowl, a Credit Memo will be created in QuickBooks. Your credit return will affect QuickBooks accounts in the following ways: A credit will be made to the Accounts Receivable and Cost of Goods Sold accounts, while a debit is made to the Inventory Asset and Sales Retail accounts. Please note the following image:

T chart credit return.JPG

The QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a credit return Sales Order is exported from Fishbowl.

As seen below, Sales Order #50039 had a credit return item listed. A credit was made to Accounts Payable and Cost of Goods Sold accounts, with Debits made to the Inventory Asset, and Sales Retail accounts.

TDBA credit return.JPG

The following image provides a Credit Memo view of this credit return.

Credit Memo credit return.JPG

Drop Shipping

Upon exporting your Sales Order (with a drop shipped item) from Fishbowl, both a Bill and Invoice will be created in QuickBooks. An Invoice will be created for the Sales Order, while a Bill will be created for the Purchase Order. When drop shipping an item, you must first place the item on a Sales Order. After issuing the Sales Order, a Purchase Order will automatically be created for your vendor. Upon Receiving your Purchase Order, your Sales Order will also auto-fulfill. You may then export to QuickBooks to have both a Bill and Invoice created. Your drop shipped order will affect QuickBooks accounts in the following ways: A credit will be made to the Accounts Receivable and Cost of Goods Sold accounts, while a debit is made to the Inventory Asset and Sales Retail accounts. Please note the following image:

T chart drop ship.JPG

The QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when an item is drop shipped and exported from Fishbowl.

As seen below, Sales Order #50041 and Purchase Order #10034 were fulfilled in Fishbowl. Credits were made to Accounts Payable and Sales Retail, with Debits made to the Accounts Receivable and Cost of Goods Sold accounts.

TDBA drop ship.JPG

The following images provide both a Bill and Invoice view of the drop shipped item.

Invoice drop ship.JPG

Bill drop ship.JPG

Misc Items

Upon exporting your Sales Order (containing a Misc Item) from Fishbowl, an Invoice will be created in QuickBooks. Your Misc item will affect QuickBooks accounts in the following ways: A credit will be made to the Sales Retail account, and is offset by a Debit made to the Accounts Receivable. Please note the following image:

T chart misc sale.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a Sales Order with a service item is exported from Fishbowl.

As seen below, Sales Order #50040 had a misc item described as a Clearance Item. A credit was made to the Sales Retail account with an offset debit made to the Accounts Receivable.

TDBA misc sale.JPG

The following image provides an Invoice view of this misc sale. The report has been customized to show the Number and UOM of the product.

Invoice misc sale.JPG

Standard Shipping

For a standard Sales Order that includes a Shipping line item, the following process takes place when exporting to QuickBooks:

Upon exporting your fulfilled Sales Order, an Invoice will be created in QuickBooks for the Sales Order. (The following information is given for a fulfilled Sales Order that has not been already paid for in Fishbowl). Your Sales Retail, Inventory Asset, and Shipping Income will all be credited. To offset the Credits made, the Accounts Receivable and Cost of Goods Sold will be debited. Please see the following image:

Fulfilling a sales order with a shipping line item.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when the Fulfilled Sales Order is exported from Fishbowl:

Sales Order #7 had a total of 2 inventory items and 1 shipping line item. This order was made for the customer All About Bikes.

SO with shipping item transaction detail by account.JPG

The following image provides an Invoice view of this Shipping item:

Invoice Shipping item.JPG

If a shipping cost is added in the Shipping module, an additional entry will be added in QuickBooks that debits the Shipping Expense account and credits the Shipping Accrual account as illustrated in the following images.

Add Shipping In Shipping Module.png

Add Shipping In Shipping Module QB.png

Carton Based Shipping

Upon exporting your Sales Order with Carton Based Shipping from Fishbowl, an Invoice will be created in QuickBooks. Carton Based Shipping will affect QuickBooks accounts in the following ways: A credit will be made to the Shipping Accrual and Shipping Income accounts, while a debit is made to the Accounts Receivable and Cost of Goods Sold accounts. Please note the following image:

T chart carton based shipping.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a Sales Order with Carton Based Shipping is exported from Fishbowl.

As seen below, Sales Order #50038 has a debit to the Accounts Receivable and Cost of Goods Sold account, with a credit made to the Shipping Accrual and Shipping Income accounts.

TDBA carton based shipping.JPG

The following image provides an Invoice view of this order. The report has been customized to show the Number and UOM of the product.

Invoice carton based shipping.JPG

Handling prepayments

Payments in Fishbowl are typically received when a sales order is being fulfilled. However, some companies may require their customers to pay in full for the order days or weeks before it is fulfilled. If a payment is taken in Fishbowl and then exported to QuickBooks before anything on the order is fulfilled, there will be a credit to Accounts Receivable, but no offsetting debit until the order is fulfilled and the invoice is exported. This will cause the Accounts Receivable balance to appear temporarily understated until the order is fulfilled. For the occasional prepayment, this is unlikely to be an issue, but for companies that consistently take prepayment, the following process may be helpful as it will prevent Accounts Receivable from being affected by prepayments. Instead, prepayment amounts will be recorded in a liability account as unearned revenue until the order has been fulfilled.

Creating a prepayment item

The following steps only need to be performed once.

  1. In QuickBooks, open the Chart of Accounts, create a new account, set the type to Other Current Liability, and name it Advance Customer Payments or something similar.
    Advance Customer Payments Account.png
  2. In Fishbowl, open the Accounting module, click the checkbox to import Accounts, and then click the Import button to the left of the checkboxes.
    Import Accounts from QuickBooks.png
  3. In Fishbowl, open the Part module, click the New button, enter Prepayment or something similar in the Number field, select Service as the Type, and then click Next.
    Create Prepayment Part.png
  4. On step 3, select the lower option to create a corresponding product and then finish the wizard.
    Create Prepayment Product.png
  5. On the Accounts tab of the newly created part, map both the Expense and COGS accounts to the same Service account in QuickBooks.
    Map Prepayment Part Accounts.png
  6. On the Details tab of the newly created product, map the Income Account to the newly created Advance Customer Payments account.
    Map Prepayment Product Accounts.png

Taking a prepayment

Once the Prepayment item has been created in Fishbowl, the following process can be used to take prepayment for an order.

  1. Make note of the original order total and then create a new sales order with the Prepayment item. Set the price of the Prepayment item to the total of the original order as a positive number and then receive the payment using the Quick Ship button.
    Prepayment Step 2.png
  2. Once the payment has been received, add the Prepayment item to the original order and set the price to the payment amount as a negative number, making the sales order total zero. The order notes or memos could be used to record the order number associated with the payment. Click the Save button once all changes have been made.
    Prepayment Step 3.png

When the payment is sent to QuickBooks, it will be exported to the Advance Customer Payments account, instead of the Accounts Receivable account.

Prepayment in QuickBooks.png

When the order is fulfilled it will export to QuickBooks as a paid invoice and the Advance Customer Payments liability will be zeroed out.

Prepayment in QuickBooks after order is fulfilled.png

NOTE: This process can be modified to meet the needs of each company. For example, both Prepayment items could be added to the original order, eliminating the need for an additional sales order. In this case, two prepayment products could also be grouped in a kit with different names or amounts. The sales order in Fishbowl would reflect the actual order total instead of zero. The process would be similar to that listed above. First, issue the order, receive the prepayment with the Payment button, right-click the positive Prepayment amount, choose Fulfill, and then click the Save button. The journal entries would be identical to those displayed above except for two additional offsetting entries that would appear in the Accounts Receivable account.

Purchase Order
Jump to top of page

Purchase Order Standard Inventory Items

Upon exporting your Purchase Order from Fishbowl, a Bill will be created in QuickBooks. Your Standard Inventory item will affect QuickBooks accounts in the following ways: A credit will be made to the Accounts Payable account, with an offset Debit made to the Inventory Asset account. Please note the following image:

T chart PO standard inventory items.JPG

The QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a Purchase Order is exported from Fishbowl.

As seen below, Purchase Order #10030 had a Standard Inventory item listed. A credit was made to Accounts Payable account, with a Debit made to the Inventory Asset account.

TDBA PO inventory item.JPG

The following image provides a Bill view of this Standard Inventory Item.

Bill standard inventory items.JPG

Purchase Order Shipping Items

Purchase Order shipping items can be handled in a few different ways. The shipping charge can be paid to the vendor, or the charge can be accrued and paid to the carrier. Additionally, the expense of shipping can be landed to inventory items.

Pay Shipping To Vendor

The shipping charge will be paid to the vendor if the shipping item was placed on the original Purchase Order, or if the shipping item was added during reconcile with the Add item to Vendor bill box checked. Accounts Payable will be increased by the shipping amount because the shipping charge will be paid to the vendor.

Pay Shipping Charge to Vendor.png

Accrue Shipping

If the Add item to Vendor bill box is unchecked during reconcile, the shipping charge will be placed in Shipping Accrual so that it can later be paid directly to the carrier. This option is sometimes used when the customer has an account with the carrier, making it advantageous to pay the carrier directly. The next section describes the process of paying the carrier after the shipping charge has been accrued.

Accrue Shipping Charge.png

Pay Shipping to Carrier

Once the shipping charge is in the Shipping Accrual account as described above, the carrier needs to be paid. Create a new bill for the carrier in QuickBooks, enter the amount to be paid, and select Shipping Accrual on the Expenses tab. When the bill is paid, the funds from the Bank Account will be used to decrease Shipping Accrual.

Pay Shipping Charge to Carrier.png

Land Shipping

Regardless of whether the shipping charge is paid to the vendor or to the carrier, the shipping expense can optionally be included in the cost of inventory by landing the cost during Reconcile. The expense will be moved from Shipping Expense to Inventory Asset.

Land Shipping Charge.png

Purchase Order Non-Inventory Items

Non-Inventory Items are, obviously, not stored within the Inventory module in Fishbowl. In fact, placing non-inventory items on orders is more to just create a paper-trail that may hold records of the item if needed at any future date. Using the Fishbowl created accounts, non inventory items are defaulted to adjust the Accounts Payable and non inventory account (which is an expense account). Remember, however, that accounts may be mapped to the desire of your company by using QuickBooks created accounts during the Accounting Configuration Wizard.

Upon exporting your Purchase Order from Fishbowl, a Bill will be created in QuickBooks. Your non inventory item will affect QuickBooks accounts in the following ways: A credit will be made to the Accounts Payable account, with an offset Debit made to an expense account. In our scenario, the non inventory account is mapped as an expense account. Please note the following image:

T chart Purchasing non-inventory items.png

The QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a Purchase Order is exported from Fishbowl.

As seen below, Purchase Order #10074 had a Non Inventory item listed and was fulfilled in Fishbowl on November 10, 2010. A credit was made to Accounts Payable account, with a Debit made to the Non Inventory expense account.

TDBA PO Non Inventory Items.JPG

The following image provides a Bill view of the Non Inventory Item.

Bill non inventory items on PO.JPG

Purchase Order Credit Return

Upon exporting your Purchase Order from Fishbowl, a Credit Memo will be created in QuickBooks. Your Credit Return will affect QuickBooks accounts in the following ways: A debit will be made to the Accounts Payable account, with an offset credit made to the Inventory Asset account. Please note the following image:

T chart PO Credit Return.JPG

The QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a Credit Return Purchase Order is exported from Fishbowl.

As seen below, Purchase Order #10032 had a Standard Inventory item listed. A credit was made to the Inventory Asset account, with a Debit made to the Accounts Payable account.

TDBA PO credit return.JPG

The following image provides a credit view of this Credit Return Item.

Bill credit return.JPG

Manufacturing
Jump to top of page

Work Orders

There are a few different scenarios where Work Orders can be recorded. This page will discuss two of the most common practices when manufacturing a Work Order:

Process when Raw and Finished Goods are assigned to the same asset accounts

Example 1: In this scenario, both the Raw Goods and the Finished Goods are assigned to the same asset accounts. (If the user uses the default Fishbowl accounts this is how things will be established)

When a Work Order is completed with this method you will not see an adjustment in QuickBooks. The reason for this is that the asset value of your parts has simply transferred from your Raw Materials to your Finished Materials. Since these are both set to the same asset account no adjustments will be received.

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a Work Order is completed and exported to QuickBooks.

As seen below, however, in this particular case no adjustments were made in QuickBooks because both the Raw and Finished Goods were mapped to the same asset accounts.

TDBA Work Order no change.PNG

Process when Raw and Finished Goods are assigned to different asset accounts

Example 2: In this scenario, the Raw and Finished Goods have each been assigned to a different asset account. In this example we will say our Raw Goods have been set to a 'Raw Goods asset account', and our Finished Goods have been set to a 'Finished Goods asset account'.

When a Work Order has been completed 2 different journal entries will be received in QuickBooks under your asset accounts. One will be to remove the value from your Raw Goods asset account and the other will be to increase the value of your Finished Good asset account.

Tchart.work order with changed mapping.PNG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a Work Order is completed in Fishbowl and exported to QuickBooks.

In the example shown below, a bike was created on a Work Order. Three Raw Goods were used; a frame for $40, and two tires at $10 a piece making a total of $60. Therefore, $60 was credited from the Raw Goods account and $60 was debited to the Finished Goods account.

TDBA Work Order changed accounts.PNG

The following General Journal Entry from QuickBooks shows the debit and credit accounts affected when a Work Order is completed in Fishbowl and exported to QuickBooks.

JE WO with different asset accounts.JPG

Process when Labor is used on a Work Order

Using Labor is very similar to previous given examples of Raw and Finished goods; however in this case we add a Labor Type item to the Bill of Materials (Remember Labor types are not an inventory type in Fishbowl; therefore they will not be assigned to an asset account, but instead will be assigned to a Labor account).

When a Work Order is completed, your Finished Goods asset value will be raised the value of what was added as the labor parts cost. For example, let's say we created a brand new bike. The frame for our bike is $40, and the bike has two tires that cost $10 each, for a total of $60 for the bike. The bike was then assembled using Labor that cost $15. The Raw Goods account is credited $60, and the Finished Goods account is debited $60. However, since Labor was added to this order, the Labor account is credited $15 and the Finished Goods account is debited an additional $15, making a grand total of $75.

Tchart.work order with labor.PNG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when a Work Order with Labor is completed and exported to QuickBooks.

In the example shown below, a bike was created on a Work Order. Three Raw Goods were used; a frame for $40, and two tires at $10 a piece making a total of $60. Therefore, $60 was credited from the Raw Goods account and $60 was debited to the Finished Goods account. $15 of Labor was also used to assemble the bike. Therefore, $15 of Labor is credited to the Labor account, and $15 is debited to the Finished Goods account, making a grand total of $75 debited to the Finished Goods account for the order.

TDBA Work Order changed accounts with labor.PNG

The following General Journal Entry shows the QuickBooks debit and credit accounts affected with a Work Order when labor and accounts mapped to different asset accounts is completed within Fishbowl and exported to QuickBooks. JE WO with Labor.JPG

If the order includes Labor yet both Raw and Finished Goods are mapped to the same asset account, then the following T-Chart is appropriate:

Tchart.work order no change with labor.PNG

In the Transaction Detail by Account shown below, both the Raw and Finished Goods were mapped to the same Inventory Asset account (just like in Example 1) Therefore, when Labor was added to the order it is the only adjustment to be shown in QuickBooks. $30 is credited to the Labor account, and $30 is debited to the Inventory Asset account.

TDBA Work Order no change with labor.PNG

The following General Journal Entry shows the QuickBooks debit and credit accounts affected with a Work Order when labor and accounts mapped to the same asset accounts is completed within Fishbowl and exported to QuickBooks.

JE WO with labor and same asset accounts.JPG

Costing Methods
Jump to top of page

Using Average/LIFO/FIFO Costing Methods

When using Average Cost, LIFO, or FIFO for your Fishbowl Costing Methods the following process takes place when exporting a fulfilled Sales Order to QuickBooks:

Upon exporting your fulfilled Sales Order, an Invoice will be created in QuickBooks for the Sales Order. (The following information is given for a fulfilled Sales Order that has not been already paid for in Fishbowl) A Sales Adjustment (showing your total sale) will be credited, and a debit made to your Accounts Receivable will offset your Sales adjustment. Your Inventory Asset will credit, and will be offset by a debit to the Cost of Goods Sold. Please see the following image:

Completing a sales order.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when the Fulfilled Sales Order is exported from Fishbowl:

Average cost transaction detail by account.JPG

The following image provides an Invoice from QuickBooks showing Standard Inventory Items using an Average Costing Method.

Invoice average cost.JPG

The following General Journal Entry from QuickBooks shows the debit and credit accounts affected when a Fulfilled Sales Order (with average costing and inventory type items) is exported to QuickBooks:

JE Average costing.JPG

Using a Standard Costing Method

When using Standard Costing for your Fishbowl Costing Method an adjustment will be made to the Cost Variance account when an item is either received at a different cost than the Standard Cost, or is built on a Work Order for a different cost than the set Standard Cost.

Cost Variance is the difference between an actual cost and the associated budgeted or estimated cost. Negative cost variances are unfavorable indicating that more money was spent to complete a task than was budgeted for the task. Positive cost variances are favorable indicating that work was completed under budget. For example, Cost Variance (CV) equals Earned Value (EV) minus Actual Cost (AC). Or, in other words, CV = EV minus AC

Upon receiving an item for more or less than the Standard Cost, a bill will be created in QuickBooks, with an adjustment made to the Accounts Payable, Inventory Asset, and Cost Variance accounts.

T chart cost variance.JPG

The following QuickBooks Transaction Detail by Account report shows the debit and credit accounts affected when an item is received at a different amount than the Standard Cost.

For Example:

Item EA001 has a Standard Cost of $6.00 but was received on Purchase Order 10029 for $4.00. As shown below, when fulfilled and exported to QuickBooks $4.00 will be debited to the Inventory Asset account for the part with an additional $2.00 debited as the Standard Cost Variance. As an offset, the $4.00 cost of the part will be credited to Accounts Payable, and the difference between the Standard Cost and what the item was actually paid for is credited to the Cost Variance account for $2.00. Both the debits and credits add up to equal $6.00, which was the original standard cost for the item.

Transaction detail by account cost variance.JPG

The following image provides a bill from QuickBooks showing the Cost Variance adjustment:

Bill cost variance.JPG

Import/Export
Jump to top of page

Company Information

The following table shows the Company Information that is imported into Fishbowl from QuickBooks by using the Accounting Configuration Wizard. At this time, multiple addresses will not IMPORT into Fishbowl; however, if multiple Company addresses have been entered into Fishbowl they will EXPORT to QuickBooks.

QuickBooks
Imports To
Fishbowl Max Characters
Company Name
Name 60
Address
Default Address Line = 90
Zip = 10
City = 30
State = 30
State Abbr = 10
Country Name = 64
Country Abbr = 10
Phone
Phone 64
Fax
Fax 64
E-mail
E-mail 64
Web Site
Web Site 64

Customer

When a customer is created in Fishbowl, it will be exported to QuickBooks for the first time only after an order has been fulfilled and exported to QuickBooks. Aside from the Customer Name (which is required), all of the below information will be exported to QuickBooks only if it is applicable:

Fishbowl
Exports To
QuickBooks Max Characters
Name
Customer Name 60
Main
Phone 64
Fax
Fax 64
Email
E-mail 64
Other
Alt. Phone 64
Default Address
Main Address Line = 90
Zip = 10
City = 30
State = 30
State Abbr = 10
Country Name = 64
Country Abbr = 10
Bill To
Bill To Line = 90
Zip = 10
City = 30
State = 30
State Abbr = 10
Country Name = 64
Country Abbr = 10
Ship To
Ship To Line = 90
Zip = 10
City = 30
State = 30
State Abbr = 10
Country Name = 64
Country Abbr = 10
Shipping Terms
Salesperson
Rep 15
Tax Rate
Tax Code 31
Resale Number
Tax Exempt Number 30
Credit Limit
Credit Limit 12

Vendor

When a vendor is created in Fishbowl, it will be exported to QuickBooks for the first time only after an order has been fulfilled and exported to QuickBooks. Aside from the Vendor Name (which is required), all of the below information will be exported to QuickBooks only if it is applicable:

Fishbowl
Exports To
QuickBooks Max Characters
Name
Vendor Name 60
Main
Phone 64
Fax
Fax 64
Email
E-mail 64
Other
Alt. Phone 64
Default Address
Main Address Line = 90
Zip = 10
City = 30
State = 30
State Abbr = 10
Country Name = 64
Country Abbr = 10

Sales Order/Invoice/Credit Memo

Fishbowl
Exports To
QuickBooks
Customer
Customer
Class
Class
Bill To
Bill To
Ship To
Ship To
Customer PO
P.O. Number
Payment Terms
Terms
Carrier
Via
FOB
F.O.B.
Qty
Quantity
Product Number & Description
Description
Price
Price Each
Tax
Tax
Fishbowl Sales Order Number
Memo
Other Options via Tools-Module Options
Tracking Information
Description
Optional (Number, Description, UOM Full Name, or UOM Abbreviation)
Other 1 (customized in QuickBooks)
Optional (Number, Description, UOM Full Name, or UOM Abbreviation)
Other 2 (customized in QuickBooks)
SO Item Note
Description
Fishbowl Sales Order Number
QuickBooks Invoice Number

Purchase Order/Bill

Fishbowl
Exports To
QuickBooks
Vendor
Vendor
Main Office
Address
Payment Terms
Terms
Fishbowl Purchase Order Number
Memo
Part Number and Description
Description
Qty
Qty
Class
Class

Journal Entries

Fishbowl
Exports To
QuickBooks
Part
Memo
Description
Memo
Customer/Job
Name
QB Class
Class
Date and Time
Date and Time
FB Debit Amount
Inventory Asset Account
FB Credit Amount
Inventory Adjustment Account
Personal tools
Namespaces
Variants
Actions
Navigation
Other Pages
Toolbox
Print/export
Translate