This post is to help with understanding the posting journals involved when your RugSimple app is used in conjunction with QuickBooks Online (QBO). This is assuming you are using QBO to manage purchase orders for rug purchases. For this process you will also need an "Inventory Suspense" account.

Scenario: You are purchasing a number of rugs from a supplier who requires payment in full prior to shipping.

  1. Create a purchase order in QBO for the full rug amount or deposit amount (example $50,000)
  2. Keep the Purchase Order open until the shipment is received.

3. When the shipment / invoice is received for the purchase order, convert the purchase order to a "bill" in QBO. When you do that, the supplier account will get credited. Debit your "inventory suspense" account.

5. In RugSimple, you can begin to enter your new rug inventory. Remember: You can use the Bulk entry method which will add up all the items in your shipment as a cross check against what you should have received. Once all the items have been entered, the automatic inventory adjustment journal entry generated in RugSimple will clear you "suspense account" and put it to "inventory".

6. Note: Be sure to post any "additional costs" (duties, brokerage fees, freight) to the "inventory suspense" account in QBO so that when they are added into RugSimple, the total cost for the new inventory will match what is waiting to be cleared in your "suspense account".