How to control which chart of account is used when syncing information to QuickBooks Online

This article originates from the following larger help article: How to configure the QuickBooks Online integration  Please visit this link if you have other QuickBooks Online integration questions.

Finale Inventory has a set of default charts of accounts that all items and transactions are configured to use when you first create your Finale Inventory account. These accounts are located in the Application settings, Accounting tab.

IMPORTANT: The use of the desired account for transactions must be made prior to the transaction being recorded in Finale Inventory.  If you have been using Finale Inventory and have any stock transactions already committed in your Finale Inventory account, they have already used the default settings and accounts. Adding and changing the default accounts will only affect new transactions committed after the change.

In order to configure account overrides you must first create the account in the Finale Inventory chart of accounts list using the Create new account button. Then will be able to choose this new account when making setting changes below.

For instance, if you wish to have Finale Inventory push Sales income into your QuickBooks Online using specific accounts per the selling channel, you would first create the new accounts, one for each sales channel, and then make the setting changes to use the new accounts you just created.  Make sure the new accounts you create are using the appropriate type for the purpose of the account. 

There are five main areas that have settings to control the accounts that Finale Inventory will use for transactions written to the General Ledger in Finale Inventory and thus, transactions that get synced into your QuickBooks online.

• Individual product id(SKU) overrides - Product tab in application settings
• Receiving/Billing transactions - Purchasing section on the Accounting tab in application settings
• Shipping/Invoice transactions - Selling section on the Accounting tab in application settings
• Purchase/Sales order adjustment overrides - Purchasing/Selling tab in application settings
• Inventory/Integration reason code overrides - Inventory tab in application settings

Following are details on the four areas:

1. Individual product id(SKU) overrides

Application settings, Products tab - each product id in Finale Inventory can be associated with only one chart of account for Inventory asset, Income, and COGS.  By default, all product ids will use a standard set of default accounts already created in Finale Inventory.  If you wish to have different accounts for different products like raw material type products be tracked in a Raw material asset account and finished goods inventory item be tracked in a Finished Goods asset account, you will need to enable the Use accounting fields default account overrides.

Once the Override feature is enabled you go to the product details page for each product id to set the accounts to use for Asset, Income, and COGS.

These override accounts may be imported in bulk through the product import screen. 

IMPORTANT: Some of these accounts can also be overridden when syncing Income/Clearing/COGS entries to QuickBooks only in the Selling section defaults, sales source overrides. See below.

2. Receiving/Billing transactions

Application settings, Accounting tab, Purchasing section - Purchase shipments and bills can be configured to use various default accounts

3. Shipping/Invoice transactions

Application settings, Accounting tab, Selling section - Sales Order shipments and invoices can be configured to use various default accounts. There are also Sales Source overrides that can be configured to be used for grouping Income/Clearing/COGS entries to your QuickBooks Online.

Be sure to scroll down to see the Source account overrides for Sale Sources. You can use the Option name which will be the Sale Source like “Shopify”, “Amazon”, “eBay”, etc., to configure the use of specific Income/Clearing/COGS accounts per selling channels. 

If you do not see the Option name for your selling channel/marketplace or sales source, it is most likely due to the sales integration not being added to Finale Inventory.  When you add selling or marketplace integration to Finale Inventory’s Integration page, the sales source will automatically be created.  If you wish to create your own sales source fields, go to application settings, selling tab, and see the source section on the left.

4. Purchase/Sales order adjustment overrides

Application settings, Purchasing/Selling tabs, Adjustments sections. Purchase orders and Sales orders can be configured to have “below the line” adjustments that can be discounts, fees, or taxes. If these adjustments are not allocated they may be configured to override the default adjustment account from the Application settings, Accounting tab, Purchasing/Selling section defaults. Go to Application settings, Purchase/Selling tab adjustments section, and choose the appropriate credit/debit account override for the Adjustment name. Note, adjustments that are using an allocation method cannot be overridden and will be grey with no arrows for dropdown choices.

5. Inventory/Integration reason code overrides

Application settings, Inventory tab, Variance reason accounts.  Whenever a change to inventory stock levels is made outside of a Purchase order or Sales order the transaction is considered to be a variance. This variance to inventory stock level will have a positive or negative impact on the asset valuation.  Finale Inventory allows you to establish reason codes for meaning changes to your inventory.  Each reason code may be assigned to a specific chart of account for a purpose of tracking the adjustment to your inventory. The Account type for this account may be one of the following types: Other expense · Other current liability · Other current asset