ConnectWise Inventory > Use Case: Client Invoice (Journal Inventory to COGS)

ConnectWise Inventory: Client Invoice (Auto Journal Created at Time of Sale)


When an inventory item is sold, Wise-Sync will create a corresponding Inventory to COGS Journal, affecting the Cost of Goods Sold (COGS).

As there re two legs of a inventory transaction, the Procurement and the Client Invoice, and as timing can play a critical role in the early days of enabling the Inventroy feature, it is important that consideration is given to ensure that the Inventory Balance is accurately represented in Xero.

For More information Refer to: 
Pre-Setup ConnectWise Inventory > The Function of Inventory

In this example, we will be reviewing the process of the sale of an Inventory Item, in April, where the item was initially purchased in March of the same year.


Create a new Client Invoice


Connectwise InvoiceConnectWise Invoice > Product Detail


Key points of reference are on the Product Detail, this includes:

1. The cost of the item that will be posted as part of the Inventory Transaction.
2. The Warehouse from which the Asset has been sold (subject to the debit transaction)

Once the invoice is in a Closed Status, the invoice will be ready to Post to Xero.

Client Invoice Record Now Ready to Post to Xero


Once the adjustment record is closed, a new "Unposted Record" will appear in the Accounting Interface > Unposted Invoices List.



Sync Unposted Invoices Records in Wise-Sync

Processing the "Unposted Invoices" in Wise-Sync will then batch this record to Xero:


Xero Transactions Created:


Xero Client InvoiceXero Inventory Transaction (General Journal)

NOTE: If an Invoice is re-posted (deleted batch in Accounting Interface) which has an existing Inventory Journal, and error will be displayed in Wise-Sync when you attempt to sync the record to xero.


An Inventory Journal already exists for invoice '53' this journal IV.TRX: {xx} must be voided in order to post this invoice.
Refer: bit.ly/1dGKktC.


To resolve this issue, simply void the Inventory Transaction Journal, and the record will be synced to Xero, with the IV.TRX created again.

P
Paul is the author of this solution article.

Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.