QuickBooks Month End Close

Quickbooks Month End Close Procedure and Checklist for Small Business Accounting

Month End Close Tips and Tricks


What is a Quickbooks month end close? Basic steps include

  • Record deposits
  • Entering vendor payments
  • Bank Reconciliation
  • Review financial balances
  • printing and saving month end reports
  • Lock the current accounting period.


Each month Small Businesses should complete these steps to confirm all transactions are entered and reflected in the financial reports. This process when performed in a timely manner will support decisions made for the business based on financial reports.

Tips and tricks

The bank reconciliation is one of the most important steps. Remember to complete this each month in your QuickBooks company file.

QuickBooks accounts to reviewed and reconciled each month

  • Cash
  • Accounts Receivable
  • Inventory
  • Accounts Payable
  • Gross Wages

If you are a larger company there may be additional accounts that need to be reviewed for accuracy each month such as fixed assets, prepaid expenses, loan accounts and tax liabilities. If you are distribution or manufacturing company it may include WIP, Finished goods and cost of goods sold. For a month end close checklist follow the links below to request a month end close checklist in excel for your small business.

Request QuickBooks Month-End Close Checklist

View QuickBooks Quarter End Close Checklist

View QuickBooks Year End Close Checklist

Here’s how to close the books:

  1. Choose the Gear icon and select Company Settings.
  2. Choose Advanced.
  3. In the Accounting section, click on the Edit icon.
  4. Check the box labeled Close the books.
  5. Enter a closing date. …
  6. Decide what you want users to see if they try to save a transaction that is dated prior to the closing date:

For more information and support on Small Business Accounting Software visit Accounting Business Solutions by JCS and for services on Sage Software Timeslips visit www.timeslipssupport.com

QuickBooks Consolidated Financials

QuickBooks Consolidated Financial Statements

What is QuickBooks Consolidated financials?

A set of QuickBooks Consolidated Financial Statements consists of reports that show the operations, cash flows, and financial position of a parent company and each individual subsidiary. You can easily print each companies’ financial statements from your QuickBooks Company files. To get consolidated financials from multiple QuickBooks company data files you need to have a set of consolidated reports capable of easily combining them.

These financial statements include assets, liabilities, equity, income, expenses and cash flows. The balance in individual accounts from each subsidiary are totaled and presented in a single total and as a single economic entity

The top 3 reasons to have QuickBooks Consolidated Financials at your fingertips?

Consolidate – add up financial information from multiple companies with accurate totals

Standardize – to present professional financials with consistent formatting

Automate – set them up and use them over and over again with the click of a button

What financial statements can be consolidated?

standard balance sheet

income statement

cash flow statements

Other statements

Who looks at consolidated financials?


Individual Owners

Holding Company Controller

Board of directors

Financial Institutions

Tips and tricks for consolidated financials

Each company should be on the same fiscal year

The chart of accounts needs to be standardized across all companies

All entries should be recorded in the individual companies prior to generating consolidated statements

Presentation of individual and consolidated statements should be in the same format

Advanced Reporting for QuickBooks

How do I print QuickBooks Financial Statements?

  • Start QuickBooks
  • From the Reports menu
  • choose Company & Financial
  • then choose the desired QuickBooks Financial Statement
  • On the Display tab
  • change the date range to 12 months
  • (for example, select Last Fiscal Year in the Dates drop-down)
  • Change the Columns drop-down from ‘Total only’ to ‘Month.’

How do I print QuickBooks Financial Statements to PDF?

  1. Select the report or form you want to print in QuickBooks
  2. Click the “File” menu
  3. Select “Print” to use a third-party PDF printer
  4. Then, select your PDF printer from the options

Alternatively, select “File” and “Save as PDF” to use the built-in QuickBooks PDF printer.

How do I print QuickBooks Financial Statements to excel?

  1. Click on the Reports menu.
  2. Choose Company & Financial.
  3. Select either Profit and Loss by Class or Balance Sheet by Class.
  4. Choose the Dates.
  5. Click on the Excel button.

How do I print the QuickBooks Balance Sheet?

  • Start QuickBooks
  • From the Reports menu
  • choose Reports
  • Company & Financial
  • Balance Sheet Standard
  • On the Display tab
  • change the date range to 12 months
  • (for example, select Last Fiscal Year in the Dates drop-down)
  • Modify the Columns drop-down from ‘Total only’ to ‘Month.’

How do I customize the QuickBooks Balance Sheet?

You can customize your Balance Sheet report to show Year-over-Year columns.

  1. Go to Reports.
  2. In the search bar, search for and open Balance Sheet Comparison.
  3. Select Customize.
  4. Under Rows/Columns, select the Columns drop-down, then change it to the desired comparison period.
  5. Select Memorize
  6. Enter a new name to save if you wish to create a custom version

How do I print the QuickBooks Income Statement?

  • Start QuickBooks
  • From the Reports menu
  • choose Company & Financial
  • then choose Profit & Loss Standard
  • On the Display tab
  • change the date range to 12 months
  • (for example, select Last Fiscal Year in the Dates drop-down).
  • Change the Columns drop-down from ‘Total only’ to ‘Month.’
  • Learn QuickBooks

How do I customize the QuickBooks Income Statement?

You can customize your Income Statement report to show Year-over-Year columns.

Step 1: Run a report

  1. Go to the Reports menu.
  2. Find and open the report you want. …
  3. Use the basic filters at the top of the report to adjust things like the report dates.
  4. Select Customize to open the customization window.
  5. Under Rows/Columns, select the Columns drop-down, then change it to the desired comparison period.
  6. Select Memorize
  7. Enter a new name to save if you wish to create a custom version
QuickBooks Consolidated Financials

QuickBooks Consolidated Financials

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QuickBooks Advanced Report Bill of Material

QuickBooks Advanced Report bill of material detail

Do you need an advanced report for QuickBooks? We can help you. This report is a sample that shows that you can get what you need for your QuickBooks Inventory Assembly component, bill of material detail or other areas of the system.

Below is a list of Fields that are included on this customized QuickBooks advanced Report:

  • Inventory assembly (Bill of material ID)
  • Bill of material description
  • Component ID
  • Component description
  • Quantity required
  • Item Cost
  • Bill of material Total Cost
  • Bill of materials sales price
  • Quantity on hand
  • Total Cost of Quantity on hand

This report is sorted by the inventory assembly item id. The Total Bill of Materials Cost is not directly tied to the cost or avg cost values. The total cost of your bill of materials is the sum of the cost values of the components in the BOM. That means the cost of each component multiplied by the number of units required to be used in the bill of material and then each item cost is added to create the total cost of the inventory assembly. For Advanced Reporting for QuickBooks give us a call.

For QuickBooks Training Class view

What is QuickBooks Bill of Material?

The bill of materials is a list of raw materials, sub-assemblies, sub-components, parts, and quantities of each needed to manufacture an finished or end product.

Before you set up your inventory assemblies first you must make sure each item in your bill of materials exists in your inventory list. The other considerations are what type of items will be included in the Bill of Materials (BOM). The options for components include inventory, non-inventory, or service items and burden. These need to be set up as individual items before you create the final bill of material sometimes referred to as the finished item.

These are the steps to add new items in the items list in QuickBooks.

  1. The first step is to click the Gear icon in the upper-right corner and select Products and Services.
  2. Click the New button and select Inventory, Non-inventory, or Service.
  3. Enter the item details. You can reach out for help if you’re unsure of what Income and Expense accounts to use.
  4. lastly Save and close.

The last step is to add the inventory assembly also known as bill of material ID and to let QuickBooks know it will have a bill of material be sure to select the sub item box. You can then select the individual items, services and other options to define what makes up the bill of materials and the quantity required for each item that will be included in the finished good.

When you build a quantity of the assembly the detailed items (aka the component parts) are removed from the available inventory. The finished item will add to the available quantities the number of items built. The total cost of the items included in the bill are added together and now becomes the total cost of each built item.

What is the difference in a QuickBooks assemblies and QuickBooks bundles?

The term bundle refers to a group of items that you can sell and track in QuickBooks. For example, you can create a bundle called Bird Bath Bundle, which consists of item Bird Bath bottom and Bird Bath Top.

Group items you often sell together into bundles so you can easily add multiple items to transactions.

Bundles can have up to 50 items

There is no additional markup or change in price for bundles. (Bundles aren’t assemblies.) The price of a bundle = The total price of all its items.

You can’t track quantity on hand for bundles so if you want more detail about how many you buy and sell make them stock items

To add a bundle just like any other item. Click Create (+) > Invoice to add the bundle to an invoice.

The form shows whether you choose to show/hide bundle items, either “Your customer won’t see any of the items in this bundle” or “Your customer will see all items in the bundle.”

You can search for bundles by name or SKU like any other item.

Once you add a bundle to a form, you can add, edit, and delete items. You can also discount the bundle.

This is the sample view of the

QuickBooks Advanced Report Bill of Material

QuickBooks Advanced Report Inventory Assemblies and Components Detail

QuickBooks Advanced Report Inventory Assemblies and Components Detail

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Software Installation



Features QuickBooks 2019

Features QuickBooks 2019

These are so many newly added and improved QuickBooks 2019 features we can’t wait to show them to you. Give us a call to schedule your free review and discover for your self the power of QuickBooks Software. Providing Sales, Support and private training for all versions of QuickBooks Software.


1 to 30 users  – with the most powerful version of QuickBooks, and never give up access or control.

Go for the gold and get more than 6x the capacity of any other QuickBooks software product. Now you have support for hundreds of thousands of users, items, and vendors.

So much more robust functionality file payroll taxes, pay employees, accept payments, track inventory, and run reports.

Industry Specific

Now thee are versions dedicated to contractor, manufacturing & wholesale, nonprofit, retail, and professional services. QuickBooks Enterprise has versions designed specifically for your industry. Industry editions provide specialized features, like customized chart of accounts and critical reports targeted to your type of business. This helps you can do more in less time all in your software.

More Features in Advanced Inventory

If you need more control, to adapt quickly, reorder, and fulfill your customers’ needs. Now with Enhanced Pick, Pack, and Ship functionality, you can easily manage sales orders from a central dashboard. We can help with the barcode add on for QuickBooks that makes inventory control a snap.

Payroll made easier

Go papeless using the new features in QuickBooks Desktop Enhanced Payroll. Create unlimited paychecks, use free direct deposit, file payroll taxes, and generate W-2s  with no monthly fees. Make your year end easier and simplify tax time.

Quickly and Easily Collect your money

Using QuickBooks Payments streamline your collections process. Enterprise automatically updates and sends payments directly to the bank, so you’ll always know what your bottom line is and have more in your pocket.

Advanced Powerful QuickBooks 2019 Reporting

There are multiple options for Advanced Reporting and we can help you understand the one that will work best for you. You can copy existig reports and modify them or build them from scratch. Easy templates let you create reports specifically for your industry. Automatically fill in your company data and view reports without even having to export into Excel.

Field Service for QuickBooks

Field Service Management for QuickBooks connects your back office and service technicians. It makes it so easy to schedule and manage more jobs. It tells you where your technicians are what they are doing. With real-time updates from the field, job scheduling, and on-the-spot invoicing so you get paid faster.

For time and billing add on for QuickBooks for engineers and professional services.

QuickBooks Software Options

QuickBooks Software Options

QuickBooks Enterprise

If you have outgrown your QuickBooks Pro and need more power QuickBooks Desktop Enterprise 19.0 delivers robust, easy-to-use, advanced functionality. Intuit has over 200 approved add on applications. They integrate with Enterprise to expandable and customizable your QuickBooks Software Options to meet your unique business needs

QuickBooks Advanced Pricing

Now with robust customer pricing available in QuickBooks Desktop Enterprise this subscription-based feature allows for expanded customer level pricing. QuickBooks Advanced Pricing lets you control, customize, and automate your pricing, right from within your QuickBooks Enterprise desktop. You can stop looking thru excel or in your manual files for this information. You define the price rules and Advanced Pricing will do the calculations and we can provide information on your QuickBooks Software Options.

QuickBooks Desktop Enterprise with Hosting

Access your company files anytime from anywhere and allow your team better access. QuickBooks Desktop Enterprise with Hosting allows your data to be protected 24/7. Allow your team to work in your company data file no matter where they are or what device they use. QuickBooks Desktop Enterprise with Hosting can be accessed using a Mac, PC or Tablet.

QuickBooks Support Services

Contact our Certified QuickBooks ProAdvisors to learn how this solution can work for you. We have been partnering with businesses like yours for over 30 years.  Our certified ProAdvisor’s provide independent QuickBooks Consulting, Training and Setup Services and to review your QuickBooks Software Options. Visit us at www.jcscomputer.com or give us a call toll free 800.475.1047


QuickBooks Software

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Microsoft Power BI Affordable and Powerful

Microsoft Power BI Affordable and Powerful

Microsoft Power BI affordable and powerful. Do you need better reports from QuickBooks, Sage 50Cloud or Sage 100Cloud? Are you looking for interactive dashboards so you can quickly measure performances in your business?

Microsoft Power BI is an affordable, streamlined business analytics, intelligence, and reporting solution. With Microsoft Power BI, you can use the valuable data your business generates to improve your operations. Unlock the value of your data. Microsoft Power BI is a platform that lets everyone in your business make informed decisions from anywhere and on any device. This tool can be used with accounting systems such as QuickBooks, Sage 50Cloud and Sage 100Cloud.

Microsoft Power BI gives you big business analytics without the big cost. Consolidate data from various sources, then query the application to find meaningful information that can help you drive business decisions in real time. Connect with other applications you already use, and easily share information with your team.

Microsoft Power BI is a business intelligence (BI) tool that allows users to crunch data and create BI reports through a self-service interface. Use powerful drag-and-drop tools to create meaningful reports from and perform critical analysis on your data in new shape.

As of 7/16/2018 Microsoft Power BI has three pricing plans: Power BI Desktop: This offering is free to any single user and includes data cleaning and preparation, custom visualizations and the ability to publish to the Power BI service. Power BI Pro: The Pro plan costs $9.99/user/month. Current pricing is subject at the decision of Microsoft taken from https://docs.microsoft.com/en-us/power-bi/service-features-license-type

In the Power BI service, users have defined capabilities based on two types of licenses:

  • Per-userPower BI Pro licensing and free licensing. A Power BI Pro license enables access to all content and capabilities in the Power BI service, including the ability to share content and collaborate with other Pro users. Only Pro users can publish to and consume content from app workspace, share dashboards, and subscribe to dashboards and reports. A free license enables access to some of the features of the Power BI service. For more information, see Per-user license type comparison.
  • Capacity-basedPower BI Premium licensing. Premium provides dedicated capacity to deliver more consistent performance and support larger data volumes in Power BI. For individual users, Premium also enables widespread distribution of content by Pro users without requiring Pro licenses for recipients who view the content. For more information, see What is Power BI Premium? Visit Sage 50 Support.


This tool can be used with accounting systems such as QuickBooks, Sage 50Cloud and Sage 100Cloud. For additional information give us a call 800.475.1047 or email solutions@jcscomputer.com

Per-user license type comparison – Here is a list of features supported by per-user license type.

Microsoft Power Feature Comparisions Sage 100 Sage 50 QuickBooks Sage Intelligence


QuickBooks Advanced Reporting Consultant

QuickBooks Advanced reporting consultant
We can help you get the most from your QuickBooks Custom reports using your data. 800.475.1047

What is QuickBooks Advanced Reporting anyway?

With QuickBooks Advanced Reporting you can make better business decisions because it is very powerful and gives you the ability to customize your reports and gain more insights into your business. The main benefits of QuickBooks Advanced Reporting are the built in rich feature set, flexibility, it is user friendly and easy to learn and operate.

The QuickBooks Advanced Reporting tool is so flexible because you can select from multiple designs, templates, and layouts easily helping you create the reports you need to analyze your data. We are also impressed with QuickBooks Advanced Reporting and the smart reporting functionality that uses templates to help you generate custom as well as traditional reports, and easily send them out to MS Excel or PDF formats

The QuickBooks Advanced Reporting approach regarding Business Discovery puts sharing and collaborating in the center of the decision-making process. QuickBooks Advanced Reporting comprehensive dashboard technologies and interactive visualizations make data discovery easy and can display the results in a format you choose. QuickBooks Advanced Reporting connects directly to a number of business applications including Microsoft Excel, Data from Excel to any other data platform, Adobe PDF as well as QuickBooks data.

For more information give us a call 800.475.1047 or visit our home page

QuickBooks Advanced Reporting - Certified QuickBooks Advanced Reporting Consultant - Custom QuickBooks Reports

QuickBooks Advanced Reporting – Certified QuickBooks Advanced Reporting Consultant – Custom QuickBooks Reports

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Manufacturing Inventory Accounting

Manufacturing Inventory Accounting: What Happens to an Inventory Account When Materials Are Bought, Requisitioned, Manufactured, used in jobs or Sold?

If your company is a construction, distributor or manufacturing business using software and are seeking information to help understand how it should work within the software system or if you are new to these processes and are looking for better inventory control, this will help.

This document is intended to give you a high-level view and help you understand what happens to quantities on hand when items are bought, requisitioned, manufactured and/or sold. Each part of the process has its own best practices and its’ own ‘accounting under the hood’ during these various phases of inventory control. Let’s get started. Here is a simple rundown to help you understand these concepts from beginning to end.


Individual items are often referred to as raw material or components in a manufacturing environment; products for distribution; or materials for a Job. They are typically purchased through the use of a purchase order and received at the dock. The quantity on hand is increased by the number of items received and the cost of each item is typically tracked by some predetermined costing method. Tracking allow us to see the quantity and value of our inventory as an asset. Later, that tracking will also provide the tools to assign costs when they are used in manufacturing or are used on a job. Ultimately, that tracking allow us to assign a cost when completing a sale, thus granting the ability to view the profit that has been realized. Along the way, we can keep up to date with information about quantities bought, sold, used, expended, transferred or lost to mishap. Some business requires traceability for the movement of items throughout the entire manufacturing process or from purchase to sale. Manufacturers often refer to this as “quote to cash.” The receipt of items at our dock, should increase the value of our inventory while at the same time establishing either a liability for the purchase or an accrual, pending receipt of a future accounts payable invoice.

Purchased items may also be delivered directly to a client location. Usually when the documentation for this type of delivery is recorded, it is considered a ‘drop shipment’, and we are concerned mainly with recording the increase in our material expenses. When the delivery client location is a job address however, we may rather increase an asset amount in a work in process account.

Items may also be managed as non-stock when we are either, not concerned with tracking it’s value, don’t need to worry about quantities on hand, stock availability, profitability per item or sale or where tractability and/or more exacting profitability figures are not required. Sometimes it makes sense to use nonstock items when the cost of the item is so small that managing the process of recording the information is not cost effective.

When making the purchase where a vendor ships product to you and allows you to pay on account, the accounting that occurs is an increase (or debit) to inventory with a corresponding increase (or credit) to a liability account. If an invoice is received with the materials or goods, the liability would be recorded as an accounts payable amount, but if not, it is accrued in a pending payables, purchases clearing account or Accounts payable accrual account depending on your companies terminology to be relieved or transferred to accounts payable when the invoice document actually arrives and is recorded.

When making a purchase where cash, check, debit or credit card is used to directly buy inventory, the offset to an increase (debit) in inventory value would either decrease (credit) our cash in the bank or increase (credit) in the liability to our credit card company. If you are using a credit card to make the purchases, you may also want to reconcile the credit card accounts when the statement from the vendor arrives.

When recording the completed shipment of items that were ‘drop shipped’ to our clients, we usually increase (debit) our expense for the goods we purchased unless the materials were delivered to the site of our ongoing job, the transaction would most likely increase (debit) a work in process (WIP) account. Both of these would be offset appropriately based on the terms of cash or credit purchase provided by the supplier and as already outlined above.

Material Requisition, Issues, Usage or Assembly:

The first step of production, when manufacturing, is the purchase of the items or materials needed. These materials may be purchased to stock for later use during the manufacturing process or directly to a job for a project. Material issue, is the movement of materials from stock into the production process, typically for a specific job, project or production run. The entire production process is recorded in the financial records of the company, and each stage of the process may have its own journal entries. This doesn’t always mean that the overall value of inventory actually changes. Learning about the journal entries that take place during the course of the production process can help you understand the effects of production on your overall financial position. A work in process (WIP) account, may be used to track the value of materials that have been specifically earmarked for a job to help segregate them from items that are available directly for sale, while still tracking costing and other information to allow for reporting on budgeting, management of resources, traceability and ultimately to allow for profitability reporting and budgets versus actual expenses and revenue.

Issuing materials, also known as putting materials into production, is the second step in the production process. Normally, company’s account for direct and indirect materials separately. Direct materials, meaning materials that can be directly traced to finished products, are recorded as an increase (debit) in work in process and a decrease (credit) in inventory account associated with that material at the time they are issued to a production run or job. When recording indirect materials, those that cannot be directly traced to finished products, we instead increase (debit) a manufacturing overhead account while decreasing our materials inventory. Because the process of issuing direct materials is a transfer between two inventory accounts, the overall inventory balance on the financial statements may not change during the lifecycle of any given production step.

Manufacturing of Finished Goods is closely related to job costing, but there are a few major differences.

Manufacturing typically utilizes the demands on inventory to assist in the timing of the inventory procurement process. To manage manufacturing production, we may need shop floor controls and the ability to track the status of items as the process of production plays out. Steps in the manufacturing process may need to be tracked to derive required item status information or when coupled with workstations, provide a framework to assist with capacity planning. Jobs tend to be broken into steps called phases and cost codes, but here the statuses we need to track are usually a % of completion. Specific instructions or CAD drawings needed for a production step may sometimes be more detailed than phase plans found in job costing. Both manufacturing and job costing may benefit from the ability to establish estimated revenue, estimated expenses and to track and manage change orders. Bar code capabilities may also provide a great assistance in a manufacturing environment by helping to manage item movement during the receiving, issuing, usage or consumption to the job and shipping steps.

When items are used during the manufacturing process, most often the material used in production are depleted by one of three methods.

Bill of Materials Assembly/Production:

This is a good choice if production management does not require work in process tracking and either the items you make have a consistent bill of materials or are repetitively manufactured items with only minor alterations to the materials needed. At the point where production is recorded, meaning the finished item is completely assembled and ready for shipment to the customer, the quantity of component items, defined by the bill of materials, are removed from inventory and finished items are increased by the quantity produced. The cost associated with the finished quantity is a factor of the cost of materials used. At the most basic level, the cost of the materials used is simply moved from the raw materials inventory account to the finished goods account. In more comprehensive systems, additional costs, like labor or overhead, may also be included in the cost associated with the finished product. These additions may be added as additional costs to increase the finished product inventory account, but would come out of an overhead or a labor used in manufacturing account, rather than a raw materials inventory account.

Work Orders or Work Tickets:

This method is most effective if you have manufacturing process where there is a significant need to manage inventory demand over time. In other words, if production takes a long time to complete and items need to be accounted for as they are used, or if your need to correlate multiple distinct production runs in order to properly manage material demand, work tickets provide an excellent tool. Work order systems often also proved tools to allow for variation on a standard bill of materials.

Work order systems may include the ability to predefine the steps needed in the manufacturing process and allow for the printing of ‘shop travelers’ or other documents to help manage the process through all of its stages. At some point, in this type of system, the cost of materials are moved from their raw materials inventory to a work in process tracking account. Once goods are completed, the costs are transferred out of the work in process account, decreasing (crediting) it’s balance. At the same time the total cost of production is used to increase (debit) the finished goods inventory. With complex bills of manufacturing involving multiple steps, the work in process account may have been increased as each step is completed and other costs like overhead or labor are recorded. Like a material issue, final assembly is often recorded as a transfer between inventory sub-accounts, and the overall inventory balance does not change. For more complex production, inventory accounts may have increased as the additional costs associated whit each completed step are recorded. The cost of goods manufactured will remain in the finished goods inventory account until the goods are sold.


The last method is often called kitting. In this method when a finished product is invoiced, special behind the scene tools in the system, decrease the materials inventory by the quantities defined for the kit, based on their cost as tracked by the inventory system. In this instance there is a decrease (credit) in the materials inventory account with a corresponding increase (debit) in our cost of goods sold account with no intervening involvement of a finished goods inventory account.

Additional Cost of Manufacturing

Costs, other than materials, may be included as part of any of the depletion methods to increase the cost of a finished product in stock or increase the costs associated with a project or job when it is sold. These additional costs may include, labor, labor burden, subcontracted work, overhead or equipment use. Often these costs have been accounted for in other ways, so the GL accounts affected usually decrease (credit) an expense account in order to correspondingly increase (debit) the inventory account associated with the finished product. Many manufacturing systems, when the process is being tracked on Work Orders or Work Tickets, allow the definition of the operations that take place and work stations where operation steps are performed to produce a finished product. As reporting takes place on the status of these operational steps, these systems often record the the accumulation of these additional cost while allowing for oversite and management. Defining work stations and operations also provide a framework for the scheduling or available resources allowing management to identify conflicts for those resources and providing a timetable to completion. When bills of material (BOM) are combined with the management of operations and shop floor resources, it is often referred to as a bill of manufacturing. In a simple BOM assembly or kitting situation, these additional costs are often standardized and added in to the bill of materials.

Sales and Cost of Goods Sold

Deposits to jobs or manufactured items normally should be reflected as a deposit to the job, project or order. Deposits generally increase (debit) our cash in the bank while at the same time, increase (credit) our liability in a customer deposits account of some sort. The deposit should be applied to the balance due from the customer usually during the final part of the billing cycle. In a manufacturing situation, this is usually when the item is shipped while in a job cost situation where billings may be periodic or incremental, it could take place at any time up until long after the final billing when the job or project is finally considered fully complete. When the deposit is finally applied, the amount decreases (debits) customer deposits while at the same time, decreases (credits) accounts receivable, reducing the balance due from the customer.

The final step in a manufacturing environment is the sale of the items produced. The quantity being sold is shipped and recorded as such on an invoice to deplete the quantity on hand for each item being shipped. The revenue is recognized as an increase (credit) to the appropriate sales account while also increasing (debiting) accounts receivable and the balance due from the customer. Since inventory is being depleted, the inventory account is also decreased (credited) by the cost of the item and that same cost, will increase (debit) the cost of goods sold (COGS) account associated with that item. The cost associated with the sale is dictated by a costing method assigned to the product being sold.

The difference between revenues and cost of goods sold is the gross profit on the sale. If the increase (credit) to our sales account is more than the increase (debit) to our cost of goods sold account, the sale resulted in a profit.


Job Costing needs tend to differ from manufacturing in the following areas:

Both Manufacturing systems and Job Cost may require that labor, labor burden, overhead, sub-contracted services or labor, and equipment costs be rolled into the cost of what is being sold. Both often want to be able to estimate or budget their work and duplicate or review prior work for to achieve more competitive sales while insuring a profit. Each has a hierarchy of applied cost. Though highly individualized for every business entity, Manufacturing tends to rank materials as their most important cost, followed by an overhead consisting of labor, equipment, labor burden and transportation while sometimes including subcontracted services. In Job Costing time (both supplied and subcontracted labor and equipment) followed by materials is the usual hierarchy followed by labor burden and other overhead costs.

They both may also want to break their work into smaller steps for better reporting and management with the added benefit of incremental reporting providing the potential for forecast possible issues in time to make changes prior to the completion of the work. For Manufacturing, those increments are often broken down into work centers or operations, while in Job Costing we see breakdowns called phases and cost codes.

In Manufacturing systems, we generally bill customers for the product that was manufactured while Job Costing might follow one of 3 main billing methods; percent of completion, completed jobs and time and material.

The term Job Costing is most often used in the construction industry. Often the project lifecycle is longer than in Manufacturing. Labor and outside service along with actual material tend to be posted to a job during the period in which the expense occurred and comparison reporting between the actual expense and budget are review on a regular basis. Some job costing applications also use a WIP (completed job) type accounting method. Most Job Costing applications are geared towards cost tracking and often do not assist a business in the procurement process or scheduling process.

In the completed jobs accounting method, actual costs are accumulated in to WIP accounts during the life cycle of the job. Once the job is completed and the final invoice to the customer is created, the accounting entry increases (debits) accounts receivable while increasing (crediting) revenues. At the same time the expenses that have been accumulated in WIP are removed (credited) from WIP and added (debited) to the appropriate expense accounts. Both these transactions are normally recorded in the same accounting period.

In percentage of completion jobs, billing is based on the percentage of actual work has been completed for a Job. This could be based on a comparison of estimated vs actual expenses as tracked in the system or on a percent complete as reported from the jobsite. For example, if $500 of an estimated $2,500 in expense costs have been spent or if the project manager has reported and had approved completion of 20% of the work, the 20% of the total sale amount can be billed for the billing cycle. This billing method may use a WIP type accounting method, where cost are accumulated in WIP and redistributed at the time of billing as in the completed jobs method, or the costs may simply be expensed as they occur. When expensed directly, each invoicegenerated for a job, will only increase (debit) accounts receivable while increasing (credit) revenues.

In Time and Materials (T&M) Jobs,  all costs are directly expensed to the job. From the tracked time costs, like labor, subcontracted services or equipment usage, and tracked material costs, are used to bill the customer. Revenue is recognized when each customer invoice is generated and expenses are recorded at they are received.


Accounting Business Solutions by JCS specializes in inventory control software, assisting contractors, distributors and manufacturing companies in leveraging technology. Our consultants are certified in Quickbooks and Sage software, including Sage 50 and Sage 100, as well as manufacturing add-ons such as JobOps and MiSys Manufacturing. Call us today at 800-475-1047 today!

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What’s New in Quickbooks 2019

The highly anticipated Quickbooks 2019 software was released on September 17, 2018.  Quickbooks 2019 is full of helpful features which improve upon prior versions of Quickbooks software, including Quickbooks 2018 and Quickbooks 2017. Each week, we will be highlighting just a few of these new and improved Quickbooks 2019 features.

Quickbooks 2019 features include….

More reliable sick and vacation time tracking.

In the past, it was easy to overpay employees for sick and vacation benefits in Quickbooks Payroll. In Quickbooks 2019, Intuit has included a helpful warning when an employee has used up their sick or vacation time. In fact, the new pay stub format includes a column for accrued, used, and available sick and vacation time so that both employer and employee are clear on what has been used.

Inventory Enhancement

In prior Quickbooks versions, we often came across issues where the balance sheet did not match the Inventory Item Summary report. By default, the inventory item summary will not list inactive items, but the inventory total would include inactive items as shown in total on the balance sheet. In Quickbooks 2019, if you try to mark an inventory item inactive but it still has a quantity on hand balance, you will receive  an error message. Additionally, the Inventory Valuation Summary report now shows you which items you have inactivated.

Track Your Outstanding Invoices

The new version of Quickbooks now includes a consolidated snapshot of your invoices. It also allows you to check when your invoice has been viewed so you can follow up on A/R balances easily.

Transfer of Credits for Customers and Jobs

Quickbooks 2019 allows you to apply credit memos across all jobs rather than one specific job, saving you a ton of time and frustration. The new account is called “Account for credit transfer”  and is inactive and zeros out.



Are you interested in learning more about Quickbooks 2019 software? The certified Quickbooks ProAdvisors at Accounting Business Solutions by JCS offer Quickbooks support, training classes, data repair, and Quickbooks custom reports. To upgrade to Quickbooks 2019 or to learn more, call us at 800-475-1047 or email us at solutions@jcscomputer.com. Your success is our goal!

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MISys ERP Manufacturing software integrates seamlessly with QuickBooks, Sage 50 and Sage Intacct. MISys Manufacturing software is simple to install, quick to implement and easy to use.

  • Reduce inventory costs
  • Eliminate purchasing errors
  • Improve production efficiency
  • Integrate manufacturing and accounting
  • Analyze production costs more accurately

You can choose MISys Manufacturing as a cloud-based or on-premise manufacturing solution designed for small and midsized manufacturing companies. It caters to electronics, food and beverage, aerospace, defense, chemicals, health and beauty, medical devices, pharmaceuticals and transportation, etc.

MISys ERP Features includeSage 50Cloud Support, Sage 50 Quantum

  • Purchasing
  • Inventory Tracking
  • Inventory Stock Status
  • Lot Tracking
  • Bill of Materials
  • Material Requirement Planning
  • Production Management
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  • Manufacturing
  • Shop Floor Control
  • Barcode Scanner
  • Mobile Alerts
  • Cycle Counting
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Using MISys Manufacturing users can view transaction history for prior activity, enjoy integration to general ledger in core accounting systems and finally MISys Manufacturing allows users to order only what is required.

Learn More About MISYS Manufacturing from Accounting Business Solutions by JCS www.jcscomputer.com 800.475.1047

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New Features for MISys ERP

Purchase Orders now support auto-populating Custom Fields from Item Custom Fields

Similar to how BOMs and MOs currently behave, PO details now have the ability to populate Custom Fields from Items. This requires that both the Item and PO Custom Fields are configured similarly.

Added ability to close multiple Orders (POs, WOs & MOs)

This is a long requested feature, and it’s been implemented for each of our order types. While it cannot have the granularity of a single order close, you can now multi-select from the order grid and then close each selected row at once. The help will fully describe this addition, just search for “close multiple” or something similar!

Option to Hide Closed Orders (POs, WOs & MOs)

Added a new “Hide Closed” button to the navigation toolbar for the main grids for POs, WOs & MOs. This allows for an immediate hide/display of all closed orders.

Production/Supply Schedule settings are now persisted

Zoom, date and other selections for both areas are now persisted through login sessions.

Replace/Add/Remove BOM Component function

enhanced to allow the resulting Revision to be marked as current Similar to being able to select “Force New Revision”, you can now select “Make New Revision Current” which will automatically make the created Revision the Current Revision (saving you a lot of time!)

Dashboard Alerts enhanced to consider data from related tables

Dashboard Alerts can now consider related tables when applying criteria for filtering.

Dashboard Alerts/Advanced Find enhanced to allow math statements using multiple fields

This is a long requested feature. You can now perform math from multiple fields. Say you want to create a Dashboard Alert that would display any Item Location details where the Stock Quantity + the On Order quantity is greater than the Minimum Stocking threshold. Now you can!

Dashboard Alerts/Advanced Find now has Does Not Contain/Does Not Exist Clauses

Added the ability to use these clauses in both Dashboard Alerts and Advanced Find.

Added option to Ignore Inactive Items from the Physical Inventory Worksheet

Inactive Items can now be filtered from the Physical Inventory Worksheet (and as such for any feed into the Physical Inventory batch).

Added option to Ignore Inactive Items, Closed Orders & Posted Batches to the Data Integrity Check

Added options to individually skip Inactive Items, Closed Orders and/or Posted Batches from consideration in the Data Integrity check. Larger databases should see significant improvements while running the check.

Keyboard Bindings are now persisted

Over the last few updates/versions we’ve been adding more settings/selections be persisted between sessions. This update adds keyboard shortcuts to the settings that are persisted.