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Financial Exchange Overview

SOLVEDby QuickBooks13Updated December 01, 2022

QuickBooks Desktop Point of Sale tracks your daily point-of-sale business transactions like purchasing, receiving and selling merchandise as well as tracking inventory and customers. QuickBooks Desktop, on the other hand, helps you pay bills, manage cash flow, invoice customers and run financial reports.

Financial Exchange is a process of sharing information between these two programs usually done anytime or as part of your end of day procedure. Financial Exchange significantly reduces your workload as it keeps you from entering the information twice since:

This article helps you understand the process of integration between Point of Sale and QuickBooks Desktop. It also outlines the features of both programs that are allowed during Financial Exchange.

Before you can connect QuickBooks Desktop Point of Sale to your QuickBooks Desktop software and share data, the following requirements must be performed:

  • Install supported versions of QuickBooks Desktop Pro, Premier, or Enterprise on the same computer where POS is installed. Take note that POS v18 will properly integrate with any supported version of Quickbooks Desktop.
  • Make a backup copy of both your QuickBooks Desktop Point of Sale and QuickBooks Desktop files. Create a name that will allow you to differentiate the backup such as QBPOS backup before QB.
  • Do the following in QuickBooks Desktop:
    • Turn on sales tax
    • Turn on inventory
    • Set you preferences to allow Financial Exchange without having QuickBooks Desktop open. While financial Exchange should be run while QuickBooks Desktop is open, you can also do this while the program is closed. To make this possible, set your QuickBooks preferences:
      1. From the Edit menu, select Preferences.
      2. On the left pane, choose Integrated Applications then go to the Company Preferences tab.
      3. From the Applications list, select QuickBooks Point of Sale then select Properties.
      4. In Access Rights tab, select the option Allow this application to read and modify this company file.
      5. Select OK in the Properties window, and in the Preferences window.
  1. From the File menu, go to Preferences > Company > Financial > Set Up QuickBooks Dekstop Conenction Now in Point of Sale.
  2. If you have previously connected to QuickBooks, you may see a screen that says:
    • Continue to use this company file


    • Let me choose a new company file

    Always select Let me choose a new company file.
    Note: Choosing new does not affect your data in any way.

  3. You will be prompted to start QuickBooks and log in as Admin. Click Next.
  4. QuickBooks Desktop Point of Sale is now ready to share data with your QuickBooks financial software. Hit Finish.

Take note of the following before you initiate a financial exchange:

  • Financial exchange can only be done from the Server Workstation.
  • Your QuickBooks Desktop financial software company file must be open or you must have your financial software preferences set to allow automatic access during exchanges.
  • When the exchange is completed, a summary window displays the number of records exchanged and whether any errors occurred. Select View Activity Log from this window for help in information any errors that are listed.

There are two ways to perform a financial exchange:

As part of End of Day procedure

  1. On the QuickBooks Desktop Point of Sale Server Workstation, choose Point of Sale > End of Day Procedure.
  2. On the End of Day window, ensure that the Exchange data with QuickBooks check-box is selected.
  3. Choose other End of Day options, as desired.
  4. Select OK.

Manual exchange

From the Financial menu, select Financial Center then select Update QuickBooks Now.

You can use manual exchange if you want to do mid-day billings from QuickBooks Desktop or if you want to be sure that you have up-to-the-minute QuickBooks Desktop Point of Sale data.

Data transferred during the exchange

When performing financial exchange, data is transferred from Point of Sale to QuickBooks Desktop and vice versa.

Note that to avoid discrepancies and to save data review time, we strongly recommend that you add or edit items, customers, and vendors in POS only after you have begun sharing data with QuickBooks Desktop

From Point of Sale to QuickBooks Desktop

  • New customers and updated customer information (except for account limits and balances.
  • New vendors and updated vendor information
  • Sales information (receipts)
  • Receiving information (vouchers)
  • Inventory cost or quantity adjustments (as a summary adjustment Journal Entry)
  • New vendor payment terms

From QuickBooks Desktop to Point of Sale

  • New customers
  • Updated customer account limits and account balances
  • New vendors
  • New vendor payment terms

Activities done between QuickBooks Desktop and QuickBooks Desktop Point of Sale

Financial Exchange allows you to get the most from the specialized features of each program by splitting key business activities between them as shown below.

Note: This is not an all-inclusive list of the features in either program

Activity POS QBDT
Add/track inventory X
Order and receive merchandise X
Make sales and collect sales tax X
Run sales and merchandise reports X
Add customers or vendors* X X
Enter vendor billing info (invoices)** X X
Track cost of goods and expenses X
Pay bills and sales taxes X
Invoice customers X
Process payroll X
Run financial reports X
Banking activities X

* It is recommended to perform this in Point of Sale.
** Preference option: controls how receiving information is share.

Accounts affected during Financial Exchange

Accounts affected in QuickBooks Desktop QuickBooks Desktop Point of Sale data affecting the Accounts
Inventory Asset Account Vouchers, Return vouchers, Sales receipt, Returns, Adjustments, and other transactions
Cost of Goods Sold Sales and Returns
Bank accounts, undeposited funds and cash in drawer Accounts Sales, Returns, and Pay outs
Accounts Payable Vouchers and Return vouchers
Accounts Receivable Sales and Returns
Unbilled Purchases Account Vouchers
Document Offset account Adjustments
Sales Tax Payable account Sales and Returns
Gift certificate accounts Sale and Redemption of Gift Certificate
Vendor discounts account Vouchers
Sales related income accounts Sales and Returns
Purchasing expense account Vouchers
Shipping and handling account Sales
Paid out expense account Pay outs

Default accounts mappings

QuickBooks Point of Sale QuickBooks Account Account Type
Cash in Drawer Cash in Drawer Bank
Check Undeposited Funds Other Current Asset
Credit Card Undeposited Funds Other Current Asset
Debit Card Undeposited Funds Other Current Asset
Gift Certificates Gift Certificates Outstanding Other Current Liability
Gift Card Gift Cards Outstanding Other Current Liability
Accounts Receivable Account Receivable Accounts Receivable
Sales Tax Sales Tax Payable Other Current Liability
Customer Order Deposit Taken Customer Deposits Other Current Liability
Purchase Clearing Unbilled Purchases Other Current Liability
Voucher Adjustment Purchase Discounts Cost of Goods Sold
Freight In Freight & Shipping Costs Expense
Voucher Fee Freight & Shipping Costs Expense
Accounts Payable Accounts Payable Accounts Payable
Document Offset POS Inventory Adjustments Cost of Goods Sold
Shipping Shipping and Delivery Income Income
Pay out Expense Cash Drawer Payouts Expense
Tips Employee Tips Payable Other Current Liability
POS Balancing Adjustments Balancing Adjustments Other Expense

Default item account mappings

Item accounts specify where Point of Sale transfers item sales (Income), cost (COGS), and inventory value (Asset) amounts when the various item types items are sold. These are default accounts, assigned to new items as they are added to inventory. Optionally, you can apply changes to all existing items, create sub-accounts by department, or assign accounts on an item-by-item basis on the item record in Point of Sale inventory.

POS Item Type Income Account COGS Account Asset Account
Inventory Merchandise Sales Cost of Goods Sold Inventory Asset
Non-inventory Merchandise Sales Purchases- Resale Items Purchases- Resale Items
Service Service Sales Subcontracted services Subcontracted services
Assembly Merchandise Sales Cost of Goods Sold Inventory Asset
Special Order Merchandise Sales Cost of Goods Sold Inventory Asset
Group Not applicable. Group items will map to their component items.

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