Integrating QuickBooks Online with Katana streamlines your inventory and financial management by synchronizing sales, purchases, and stock data. This integration facilitates accurate financial records and efficient accounting processes.
What does the integration do?
By connecting Katana with QuickBooks, you can:
Send purchase orders (POs) to QuickBooks as bills or expenses: Purchases increase the balance of the specified inventory asset account (if sent as bills) or the expense account.
Send sales orders (SOs) to QuickBooks as invoices: Invoices can be linked to multiple income accounts based on item categories.
Import customers and suppliers from QuickBooks: Maintain consistent contact information across platforms.
Synchronize inventory data: Ensure accurate stock levels and inventory valuation.
Note: This integration is compatible only with QuickBooks Online, not QuickBooks Desktop.
Data flow between Katana and QuickBooks
Data sent from Katana to QuickBooks
Purchase orders: Sent as Bills in QuickBooks, increasing the specified inventory asset account balance (or an expense account if you choose not to track inventory between Katana and QuickBooks).
If bills are sent to an inventory asset account, you can:
Include additional costs: Allocate extra expenses to specific accounts.
Send stock adjustment values: Reflect inventory changes accurately.
Send manufacturing operations costs: Assign production-related expenses correctly.
Note: To utilize this feature, ensure that Bills are enabled in your QuickBooks account (requires a subscription to QuickBooks Essentials or higher).
Cost of Goods Sold (COGS): When an SO is delivered, you can define how COGS are recorded in QuickBooks to track accurate margins. The Accounts by category tab allows extended customization.
Sales orders: Converted to Invoices in QuickBooks.
You can:
Select default income account: Assign invoices to a specific income account.
Link item categories to income accounts: Further personalize income tracking by linking different income accounts to Katana categories.
Include shipping fees: Add shipping costs to invoices.
Data sent from QuickBooks to Katana
Sync payment status: Reflect invoice payment statuses from QuickBooks back to Katana.
Data imported from QuickBooks to Katana
Customers and suppliers: Import contact information from QuickBooks to Katana. This action can be performed multiple times as needed.
Mapping and matching data
During the integration configuration, you can map specific elements between Katana and QuickBooks:
Tax rates: Align Katana tax rates with corresponding QuickBooks tax types.
Customers and suppliers: Matched in Katana by email address and/or name. Duplicate entries are updated accordingly.
Item categories: Assign different Katana item categories to specific QuickBooks income accounts for detailed financial tracking.
Avoiding inventory duplication
To prevent duplicate inventory items in QuickBooks:
Use non-inventory items in QuickBooks: Ensure that products created in QuickBooks are set as non-inventory items.
Katana sends items as non-inventory: When items are sent from Katana to QuickBooks, they are matched as non-inventory items.
Note: If an item exists in QuickBooks already as an inventory item and is sent from Katana, a duplicate non-inventory item will be created.
Recommended setup
To get the most out of this integration, we strongly recommend that you match inventory between Katana and QuickBooks. This means that you send POs to an inventory asset account in QuickBooks (as Bills). It's best to also include stock adjustment values, manufacturing operations costs, and COGS.
Doing so will ensure that much less manual work will be necessary to maintain accuracy in accounting.
Of course, we also strongly recommend sending your SOs to QuickBooks as well, so that it's easy to keep track of income.
With everything set up, you'll easily be able to send invoices, bills, stock adjustments, etc to QuickBooks via the click of a button.
Find out more about how to connect QuickBooks to Katana.
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