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.
When you make a change to your inventory stock level in Finale Inventory using a Stock Change transaction or a Stock Take transaction it will cause the asset valuation to either go up or down. This is called a variance to your inventory stock level and valuation. These additions or subtractions from inventory should have a reason code that tags the variance with a reason or purpose for making the adjustment to your inventory. The reason codes are stored in the Application Settings, Inventory tab.
Notice that you may add your own reason codes or edit the existing ones. You can enable them for Stock changes or Stock takes or both.
By default, these inventory variances will be all reported to the inventory variance account in Finale Inventory. They will not be transmitted into your QuickBooks online into different expense accounts. They will only go into one expense account that you map Finale Inventory’s inventory variance account to on the chart of accounts page in Application settings, Accounting, Chart of accounts section.
To understand what the breakdown of the variances are for a given time period, you will need to run a custom report that shows the variances for a given time period summarized by the reason codes.
Finale Inventory also allows you to configure reason code overrides for the purpose of tracking variances into specific accounts per each reason code or type.
Go to 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 in inventory stock level will have a positive or negative impact on the asset valuation. Finale Inventory allows you to establish reason codes for meaningful changes to your inventory. Each reason code may be assigned to a specific chart of account for the 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
IMPORTANT: If you are an FBA(Fulfillment by Amazon) seller/user and you have connected Finale Inventory to your Amazon FBA account and have virtualized your FBA stock level in your Finale Inventory account using a Finale Location/Sublocation for viewing the stock level at FBA, and you have turned on the automatic, nightly feature that imports your stock levels from Amazon FBA and overwrites them in Finale Inventory, each and every day there will be variances created from this process. This will end up sending an inventory variance into your QuickBooks chart of account. If you leave the default settings in Finale Inventory which will send it all to the Inventory variance account, it will have the appearance of you finding and losing a lot of inventory. This is not recommended. Make sure you create a specific FBA Inventory variance account and map the Integration stock change reason to use this account.
FBA Alterative implementation choice: If you would still like to connect Finale Inventory to your QuickBooks and keep the virtualization of FBA inventory, we could also turn off the nightly stock import feature on the Amazon FBA. You would only run it ONCE per month, manually, on the last or first day of the month. That way you only get one variance for the entire month. In the near future, Finale Inventory will be improving the FBA stock level visibility in Finale Inventory and will have a better solution for handling the FBA stock valuation.