-Ollie and Quickbooks Online (QBO) can be integrated together so all Bills from Vendors, Journal Entries of day to day actions, and Invoices to Customers are synced in both systems.
-This integration follows Generally Accepted Accounting Principles (GAAP) to handle Cost of Goods Sold. This means the cost of the beer being sold will be recognized at the same time as the revenue of the beer being sold is recognized.
-Before moving to the Cost of Goods Sold Account, the value of these products are housed in different General Ledger (GL) Accounts depending on where in the production process the product is. The value starts in a Raw Material GL Account, then moves to Work in Progress Account (WIP), to a Finished Goods Account, and then to the Cost of Goods Sold Account once sold. These steps and suggested GL Accounts are listed below.
Purchase Orders
-Purchase Orders are the suggested way to bring in Raw and Packaging Materials into the system. This assures that the final Bill from your Vendor will appear in Ollie and QBO.
-Creating Purchase Orders in Ollie also assures that your Raw and Packaging Materials costs will be their landed costs (including shipping, taxes, and other charges) vs their purchase cost. For example, you may purchase Pilsner Grain at $0.58 a pound, but when you add in Shipping and Pallet Charge, the grain’s value is actually $0.64 a pound.
-When a Purchase Order is moved from the Draft to an Open Status, a Purchase Order is created in QBO. This Purchase Order is only created if you have QBO Plus or higher and you have Purchase Orders enabled in QBO. Purchases Orders are not required to be synced for Bills to be created in QBO. They are only informative in QBO to show future Bills that will be brought into the system.
-Purchase Orders synced to QBO will only show Unit Prices without Additional Cost. Additional Costs are only added to each line item once it is Received in Ollie Ops and turned into a Bill in QBO. (PO Date, or the Date Ordered, must be before your Received Date)
-When a Purchase Order is moved from an Open to a Received Status, the Purchase Order will be closed in QBO and a BIll will be created. (Received Date will be your Bill Date in QBO)
-Circular arrows next to the Vendor Indicate whether the PO (grey) and/or Bill (black
Purchase Order in QBO from Ollie
Bill in QBO from Ollie
-In the photos above, you will notice the difference in the line item values and the Memo on the Bill explaining this difference
-If a Purchase Order was marked as Received by accident and Unreceived in Ollie Ops, the bill will be deleted from QBO, the PO will be re-opened in QBO, and the value of all the inventory will be removed from Ollie Ops and QBO’s GL Accounts the Materials were mapped to.
-If a Purchase Order was marked as Ordered (Open Status) by accident and Deleted in Ollie Ops, the PO will be deleted from Ollie and QBO.
Raw Materials GL Accounts
-In Ollie Ops you can map the four Raw Material Categories (Grain, Hops, Miscellaneous, and Yeast) to their own GL Accounts.
-You are also able to override any of these GL Accounts by going to Settings -> Ingredients -> Click the 3 dots -> Edit Item and adjusting the Quickbooks Asset Account. This will override the GL Account chosen on the QBO Integrations Page.
Packaging Materials GL Accounts
-In Ollie Ops you can map Packaging Materials to their own GL Accounts.
-You are also able to override any of these GL Accounts by going to Settings -> Packaging Materials -> Click the 3 dots -> Edit Item and adjusting the Quickbooks Asset Account. This will override the GL Account chosen on the QBO Integrations Page.
WIP
-When you produce a batch in Ollie Ops, a JE will be created for that batch in QBO as well. The date of this JE will be your production day in Ollie Ops.
-All Raw Materials will be listed out on different lines on this JE as Credits. Each line will have the GL Account that is associated with the Raw Material under Account, the value of the Raw Materials used under Credits, and the name of the Raw Material from Ollie Ops, plus the name of the Batch that used it and it’s Batch ID # under Description. The WIP value will be summed up as a Debit. Your WIP GL Account will be listed under Account, the total current value of the Batch under Debits, and the Description will show “Batch Production - Brew Date”.
-The Memo section will show that is was a Batch Production (Packaging and Inventory Adjustment Transactions will show something different), the name of the Product, the Lot #, the Brew Log #, the Batch ID, and the Batch Log ID.
-If a Batch has multiple Turns, a JE will be created for each Turn separately.
-Any additions of Raw Materials to your Brew Log will update in this JE. A new line item will be created for the Raw Material with a value that is a Credit, and the WIP’s Debit value will be updated to include the value of the new Raw Material.
-Deleting the Batch in Ollie Ops will delete this JE completely from QBO. The values for your Raw Materials will be returned back to their GL Account and the WIP GL Account value will also be deleted.
-Any deletions of Raw Materials to your Brew Logs will update this JE. If you delete a Raw Material, it will create a Debit for that Raw Material’s Value, and will update the WIP’s Debit value.
Below Image Shows the Deletion of Bioglucanse from the Brew Day
Yeast
-There are three ways to add Yeast to a Batch; a) Fresh Pitch from Inventory, b) Pitch from another Batch, or c) Pitch from a Yeast Brink. Below are the JEs that will occur with these three different Yeast pitch Methods. With all of these methods, the Yeast value will not show on the Brew Day JE. Yeast transactions will always be on their own JEs.
- Fresh Pitch from Inventory: This will create a JE with two line items. First line will be a Credit to your Yeat’s GL Account for the value of the Yeast pitched. The second line will be a Debit for this same value and hit your WIP’s GL Account. For both lines, the Description will show the Yeast Name, the Yeast’s Lot Code, and “ - Initial cost added from Yeast Name lot #.”
- Pitch from another Batch: This will not create any JEs. Since the Yeast Value was already living in your WIP’s GL Account, the value is not moving to a new GL Account, so no JE is created. Internally in Ollie Ops, we will move the value of the yeast from one Batch to the other, but no changes are needed in QBO, so no JE is created.
- Pitch from a Yeast Brink: This will create a JE similar to the Fresh Pitch from Inventory JE above. First line will be a Credit to your Yeat’s GL Account (Yeast in Yeast Brinks will have their value in the Yeast’s GL Account and will be explained later) for the value of the Yeast pitched. The second line will be a Debit for this same value and hit your WIP’s GL Account. For both lines, the Description will show the Yeast Name, the Yeast’s Lot Code, and “ - Cost moved from pitching yeast from Yeast Brink Name.”
-Dumping Yeast from an active Batch will not create any JEs in the system. The value of this Yeast is locked in to the Batch it was in and will move from the Batch’s WIP value to Finished Goods value. Since the value of the Yeast is not moving to a new GL Account at the time of being dumped, no JE will be created.
-Transfering Yeast from an active Batch to a Yeast Brink will create a JE with two line items. The first line will be a Debit to your Yeast’s GL Account for the value of the Yeast moved to the Yeast Brink. The second line will be a Credit for this same value that will hit your WIP’s GL Account. The values moved back to your Yeast’s GL Account because the Yeast is no longer associated with a Batch. For both lines, the Description will show the Yeast Name, the Yeast’s Lot Code and “- Cost moved when transferring yeast from batch # and Name to Yeast Brink Name.”
-Transfering Yeast from an active Batch to an open Fermenter will create a JE with two line items similar to Transferring Yeast from an active Batch to a Yeast Brink. The first line will be a Debit to your Yeast’s GL Account for the value of the Yeast moved to the Yeast Brink. The second line will be a Credit for this same value that will hit your WIP’s GL Account. We are moving the value back to your Yeast’s GL Account because the Yeast is no longer associated with a Batch. For both lines, the Description will show the Yeast Name, the Yeast’s Lot Code and “- Cost moved when transferring yeast from batch # and Name to Fermenter’s Name.”
-Dumping Yeast from a Yeast Brink will create a JE with two line items. This will be the same JE that is created if you dump Yeast out of any other Tank as long as that Yeast is not associated with a Batch still. The first line will be a Credit to your Yeast’s GL Account for the value of the Yeast that was dumped. The second line will be a Debit for this same value that will hit your Inventory Adjustment’s GL Account. This value is going to your Inventory Adjustment because the Yeast is no longer in the system and is not currently tied to any Batches. This is a similar JE that would be made if you destroy a fresh pitch of Yeast out of your Inventory during an Adjustment (Adjustments are covered later in this document) For both lines, the Description will show the Yeast Name, the Yeast’s Lot Code and “- Yeast pitch dumped from tank Tank’s Name (this will either be a Yeast Brink, Fermenter, or other tank type.”
Transferring Between Tanks
-No JEs are created when you transfer a Batch between Tanks or from Tanks to Barrels. During this time, all the cost value of the Batch is still living within your WIP. Any loss that occurs during transfers is absorbed by the Batch and does not leave WIP either. In Ollie, the cost/BBL of the batch is higher once you have a loss in a transfer, but there are no changes on the QBO side.
Finished Goods
-When you package a batch in Ollie Ops, a JE will be created for that Packaging Run in QBO as well. The date of this JE will be your Packaging Run day in Ollie Ops.
-All Packaging Materials will be listed out on different lines on this JE as Credits. Each line will have the GL Account that is associated with the Packaging Material under Account, the value of the Packaging Materials used under Credits, and the name of the Packaging Material from Ollie Ops, plus the number of the Packaging Run under Description. There will also be one or two WIP values on this JE as Credits. You will have only one line of WIP if there was no loss during your Packaging Run, and two lines if there was loss during Packaging Run. The first line of WIP will be the value of the Product that was needed to Package (for ex: value of 10 BBLs if 20 ½ kegs were packaged). The Description will be the “Package Type - Lot Number - Batch Cost.” The second line will be the value of the Product that was Loss. The Description will be the “Package Type - Lot Number - Packaging Loss Cost.” The Finished Goods value will be summed up as a Debit. Your Finished Goods GL Account will be listed under Account, the total current value of the Packaging Run under Debits, and the Description will show “Packaging Run - Packaging Date”.
-The Memo section will show that is was a Packaging Run, the date of the Packaging Run, the name of the Product, the Package Type, the Lot #, the Brew Log #, the Packaging Run ID, and the Batch Log ID.
-Any additions of Packaging Materials to your Packaging Run will update in this JE. A new line item will be created for the Raw Material with a value that is a Credit, and the Finish Good’s Debit value will be updated to include the value of the new Packaging Material.
-Deleting the Packaging Run in Ollie Ops will delete this JE completely from QBO. All values of Packaging Materials, WIP, and Finished Goods will be returned to their original GL Account.
-Any deletions of Packaging Materials on your Packaging Run will update this JE. If you delete a Packaging Material, it will create a Debit for that Packaging Material’s Value, and will update the Finished Good’s Debit value.
-When Finished Goods are transferred from Ollie Ops to Ollie Order, no JE are created. The value of these Finished Good Products are still living within Finished Good’s GL Account. Although the value within Ollie has moved from Ops to Order, nothing will change on the QBO side. It is important that the Finished Goods GL Account in Ollie Ops and Ollie Order match. Below, circled in red, shows the two GL Accounts that should match in Ollie Ops and Order.
Ollie Ops Finished Goods GL Account
Ollie Order Finished Goods GL Account
Revenue
-When creating Invoices in Ollie Order for your customer’s, there are two options when these Invoices are created in QBO. You can choose to have the Invoice created in QBO a) once the Order moves from Draft to Accepted in Ollie Order or b) once the Order is moved to Posted in Ollie Order. You will make this decision on the QBO Integration Page. Under Additional Options on the QBO Integration Page, you will see “SYNC NON-POSTED ORDERS.”
- To have Invoices created in QBO once the Order is moved from Draft to Accepted in Ollie Order, choose “Yes” from the dropdown under “SYNC NON-POSTED ORDERS” (Make sure to hit Save on the Integrations Page). Now, anytime an Order is moved from Draft to Accepted, the Invoice will be created in QBO. Any edits made to the Order at any stage will update in QBO within 5 minutes. The Invoice will update in QBO automatically if the Order moves from one stage to another in Ollie Order (ex: the Order moves from Accepted to Shipped, or Delivered to Posted). If any edits are needed once the Order is Posted, you can Unpost the Order, make any edits, and then Post the Order again. Once Posted again, the Invoice will be updated in QBO.
- To have Invoices created in QBO once the Order is moved to posted, choose “No” from the dropdown under “SYNC NON-POSTED ORDERS” (Make sure to hit Save on the Integrations Page). Now, anytime an Order is Posted in Ollie Order, the Invoice will be created in QBO. If any edits are needed once the Order is Posted, you can Unpost the Order, make any edits, and then Post the Order again. Once Posted again, the Invoice will be updated in QBO.
-Regardless of when Ollie Order syncs the Invoice to QBO, the Invoice will look the same in QBO.
-In Ollie Order, you can check that the Invoice synced to QBO by going to the Integrations Tab of the Order. Here you will see the Invoice (and the JE that will be discussed in the Cost of Goods Sold section) and it’s Status. When the Invoice is sent up to QBO, the Status will show “Success”, the Type is “Order Sent”, Description is blank, and under Created you will see the Date the sync occurred. This date is when the sync happened, not the date of the Invoice in QBO.
-The Invoice in QBO will bring over the Customer’s Name (see Customer’s section for setting up your Customers). The Ship To and Bill To will be the addresses that are set up in QBO. The Invoice no. is the Reference Number from Ollie Order, the Invoice Date is the Date from Ollie Order, and the Due date is the Payment Due Date from Ollie Order.
-The Product or Service on the Invoice in QBO is from the Product/Service Mapped that is set up in your QBO Integration Page in Ollie Order.
-The first four Mappings on this Integration Page will show up for everyone that is connected to QBO. (Income Service/Product, Government Deposit Service/Product, Payment Deposit Account, and Keg Deposit Service/Product). All of these sections must be mapped for the QBO Integration to work, and for Invoices to be sent up to QBO. The other mappings on this page will be discussed on Cost of Goods Sold.
-If the following four sections are not mapped on this page, the Invoice from Ollie Order will NOT sync and be created in QBO.
-Income Service/Product: This is the Service that will show up on the Invoice in QBO. This Service can be set up to put Revenue in an Income GL Account in QBO. To set up this Service, go into QBO -> Products & services-> New -> Service. Here you can name the Service and choose the Income Account (GL Account) the Revenue will go to.
-The Income Service/Product mapping can be overridden by going to the Integrations page in Ollie Order and clicking on the Product Mapping tab. Here you can map each Product Variant to a Service in QBO individually. If this is left Blank, it will map to the Default Income Service/Product that was set up on the previous page. This individual Product Variant Mapping only applies to Revenue, you cannot have Cost of Goods Sold go to different GL Accounts (this will be reviewed in the Cost of Goods Sold section
-Government Deposit Service/Product: This is the Service that is tied to your Can Deposits. This can be mapped to a different Service in QBO than your Finished Goods so it can be tied to a different GL Account. This Service would be set up the same way in QBO as your Income Service/Product. Ask your Accountant / Bookkeeper what GL Account this Service should be tied to. This is used mainly for Canadian customers. Anyone outside of Canada can map this to the same Service that your Income Service/Product is mapped to.
-Payment Deposit Account: This Account Mapping is only used if you are accepting Credit Card Payments within Ollie Order. Here you can choose an account this Payments will go to. Your Payment Accounts listed in the Ollie Order dropdown are any Asset GL Accounts you have created in QBO.
-Keg Deposit Service/Product: This is the Service tied to your Keg Deposits. This can be mapped to a different Service in QBO (similar to Government Deposits) than your Finished Goods. This Service would be set up the same way in QBO as your Income Service/Product and/or your Government Deposit Service/Product. Ask your Accountant / Bookkeeper what GL Account this Service should be tied to. If you do not use any Keg Deposits, you can map this to the same Service that your Income Service/Product is mapped to.
-NOTE: All four of the above sections must be mapped to something in QBO for Ollie Order to send up Invoices to QBO. If they are not mapped, no Orders will sync.
Cost of Goods Sold
-Cost of Goods Sold is sent up to QBO via a JE whenever the Order is Posted. Unlike Revenue, putting the Order to Posted is the only time this JE can be created in QBO.
-A Cost of Goods Sold JE will only be created if you have Lot Codes turned on in Ollie Order. To turn on Lot Codes, go to Settings -> Brands -> Choose your Brand -> Inventory Tracking -> Toggle On “Track Lot codes and Cost of Goods” -> Hit Update
-In Ollie Order, you can check that the Cost of Goods Sold JE synced to QBO by going to the Integrations Tab of the Order. Here you will see the Invoice (this is discussed in the Revenue section), and the Journal Entry. Here you will also see it’s Status. When the JE is sent up to QBO, the Status will show “Success”, the Type is “Journal Entry Sent”, Description is “Posted”, and under Created you will see the Date the sync occurred. This date is when the sync happened, not the date of the JE in QBO. The JE date is the same as the Invoice date.
-You do not want to Post the invoice until all of your Lot Codes are chosen correctly. The value of the JE will Debit your Cost of Goods Sold Account and Credit your Finished Goods Account. These accounts can be mapped in the QBO Integrations section of QBO. There are three sections to map for this integration.
-Finished Goods Account: This should be the same GL Account that you have mapped in Ollie Ops. This GL Account houses all the value of your packaged Finished Goods. This is the account that will be Credited (reduced) once you Post an Invoice in Ollie Order.
-Cost of Goods Sold Account: This should be mapped to your Cost of Goods Sold GL Account. This is the GL Account that will be Debited once you post an Invoice in Ollie Order.
-Inventory Adjustment Account: This is mapped to the GL Account that will be the offsetting account for any Inventory Adjustments. Adjustments in Ollie Order will be discussed later in this document.
-The JE created in QBO will list out each item on the Order individually. The first Credit will be the GL Account that the Finished Goods are mapped to as the account, the Value of that Product as the Credit, and the Description will show Name of the Product - Package Size (Lot Code). The Debit associated with the Credit will be the GL Account that the Cost of Goods Sold are mapped to as the account, the Value of that Product as the Debit, and the Description will show Name of the Product - Package Size (Lot Code). Keg Deposits do not show up on this JE, they show up on the Invoice.
