As ERP consultants, we run into examples all the time where QuickBooks is not an ideal solution for manufacturing for customers using QuickBooks out of the box. Intuit does sell industry specific versions of QuickBooks (one is called QuickBooks Enterprise Solutions Manufacturing & Wholesale) for the Manufacturing industry. This Manufacturing version of QuickBooks is limited to a few minor benefits. Our Manufacturing QuickBooks customers find that it doesn't have a means of automatically allocating expenses to multiple departments, allocating overheads, etc. This Manufacturing industry version of QuickBooks also doesn't have a means of easily recording costs of materials purchases when freight and other costs are billed separately.
Understanding how a good ERP software solution would integrate with QuickBooks is essential to you understanding how the data flows and what decisions you will need to make when looking at a ERP solution. Click HERE for tips for selecting an ERP system for your Manufacturing business. Here are some useful tips on selecting an ERP system.
There are four areas that Manufacturing customers usually benefit from integrating a Manufacturing ERP solution with QuickBooks. Here are a few really simple integration considerations that you should look for to manage your Manufacturing business.
- The customers you have in QuickBooks will need to be setup or imported into your Manufacturing ERP system. They need to be the same on both sides in order for you to post cash received. A good ERP system will do your quote, sales order, invoice, and shipment and then send the invoice data to QuickBooks. The cash posting takes place on the QuickBooks side.
- Your vendors you need in the ERP system will also need to be the same as your QuickBooks vendors. The most effective ERP system for your business should create a requirement for procurement whether it be the item in inventory which is below the threshold, the description only or nonstick item, or even the requirement for an outside processes vendor. Once the receipt of the item is posted in the ERP system, it should send the receiver over to QuickBooks to be matched with the Vendor invoice entered. The checks are still done in QuickBooks
- The inventory you carry in QuickBooks will also be carried in the ERP system. Most ERP systems will allow you to select whether you want inventory to post from the ERP System to QuickBooks and be carried on both sides, or you can select to just keep inventory on the ERP side. If that is your choice, then a manual journal would need to be done at the end of each month for the changes in the inventory. Keep in mind timing at the end of your month. Things need to be done in order if you are automating the inventory into QuickBooks.
- Other requirements may also be considered. Fiscal periods will need to be the same. Your units of measure, classes of products, etc.
It is important you have an ERP consultant to guide you through the process of implementation. Setting up a Manufacturing ERP system incorrectly can cost you lost productivity and hard dollars. If you don’t have an integrated ERP system in place to track your costs it could cost you more in the long run.
As ERP consultants, Business Logic Solutions endorses VISUAL Jobshop software by Infor which has a great integration with QuickBooks. We also have a certified QuickBooks ProAdvisor on staff. Please contact us today for a free demo and needs assessment so we help your Manufacturing business get more out of your QuickBooks. Visit us at www.blsolution.net