QuickBooks Point of Sale integrates with QuickBooks Pro, Premier, and Enterprise by sending over daily deposit and revenue information as well as sending over bills or item receipts for inventory purchases.  The typical vendor related flow of transactions is as follows:

  1. When the product is ordered, enter a purchase order (PO) in QuickBooks Point of Sale (QB POS)
  2. When the product is received, convert the PO to a Receiving Voucher in QB POS.  On the next sync with QB Financial software (QB), an item receipt will be entered in to QB.
  3. When a bill is received for the product, update the receiving voucher in QB POS by adding the bill number, due date, and adding shipping charges.  On the next sync with QB, the item receipt will be converted to a bill for payment.
  4. Once you're ready to pay the bill, go into QB and pay the bill from the Pay Bills window.
This standard process doesn't allow for prepayments on inventory purchases since the bill is only sent to QB once the product is received.  To allow for prepayments on inventory purchases, go into QB and set up an account called Prepaid Inventory.  This account must be a "bank" type account.  Here is an updated process for the vendor related flow of transactions when using prepayments:
  1. When the product is ordered, enter a purchase order (PO) in QuickBooks Point of Sale (QB POS).  Go into QB and use the "Write Checks" or "Enter Credit Card Charges" windows to issue a payment.  Use your regular checking or credit card account for this transaction but use the new "Prepaid Inventory" account to code these transactions on the expenses tab.
  2. When the product is received, convert the PO to a Receiving Voucher in QB POS.  On the next sync with QB Financial software (QB), an item receipt will be entered in to QB.  Update the receiving voucher in QB POS by adding a bill number (Could use PP for Prepayment).  On the next sync with QB, the item receipt will be converted to a bill for payment.
  3. In QB, go to the Pay Bills window and pay the bill using the new "Prepaid Inventory" bank account.  Once this bill is paid, the account balance of the "Prepaid Inventory" bank account should be zero.
For more information on setting this up for yourself in your own retail store, give us a call.