Integrating With Items In QuickBooks
When you set up Smart Contractor to integrate with QuickBooks, the QuickBooks Setup Entry form gives you an option to Use Smart Contractor Job Phases, or to Use QuickBooks Item List.
This option determines what item list will be used in QuickBooks.
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If you select the option to Use QuickBooks Item List, this will allow you to continue to use an existing item list in QuickBooks, but in order to do so, Smart Contractor requires you to "map" Job Phases in Smart Contractor to Items in QuickBooks.
Transactions entered in Smart Contractor (Estimates, Bills, Check and Credit Card Purchases, Invoices, etc.) will be copied to QuickBooks under the Item that corresponds to the Job Phase in Smart Contractor.
Note: Since each Item in QuickBooks may be mapped to more than one Job Phase in Smart Contractor, this makes it more difficult to audit transactions between the two programs.
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If you select the option to Use Smart Contractor Job Phases, Smart Contractor will create a list of Items in QuickBooks from the Job Phases in Smart Contractor.
Transactions entered in Smart Contractor (Estimates, Bills, Check and Credit Card Purchases, Invoices, etc.) will be copied to QuickBooks under the Item that corresponds to the Job Phase in Smart Contractor.
Note: Since there is a one to one correspondance between Job Phases in Smart Contractor and Items in QuickBooks, makes it easier to audit transactions between the two programs.
Integrating With GL Accounts Or Classes In QuickBooks
When you set up Smart Contractor to integrate with QuickBooks, the QuickBooks Setup Entry form gives you an option to "Post Job Item Expenses To:" Separate GL Accounts, or to QuickBooks Classes.
This option determines how Smart Contractor will post expenses in QuickBooks for the 5 separate cost categories: Materials, Labor, Equipment, Subcontract, and Other.
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If you select the option to Post Job Item Expenses To: QuickBooks Classes...
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The the QuickBooks Setup Entry form will prompt you for the classes in which to post each expense category: Materials, Labor, Equipment, Subcontract, and Other.
In order to complete the QuickBooks integration process, you must create a separate Class in QuickBooks for each expense category: Materials, Labor, Equipment, Subcontract, and Other.
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When Smart Contractor posts expense transactions in QuickBooks, it assigns the appropriate QuickBooks Class depending on the expense category: Materials, Labor, Equipment, Subcontract, and Other.
For example, the "Appliances" Job Phase in Smart Contractor would be mapped to the "Appliances" item in QuickBooks. A purchase transaction for a Refrigerator in Smart Contractor (Job Phase "Appliances", expense in "Materials" category) would be posted to the "Appliances" item in QuickBooks, with the Class set to "Materials".
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If you select the option to Post Job Item Expenses To: Separate GL Accounts...
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The QuickBooks Setup Entry form will prompt you for the GL Accounts in which to post each expense category: Materials, Labor, Equipment, Subcontract, and Other.
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Smart Contractor will create five sub-items under each Item in QuickBooks; one for each expense category: Materials, Labor, Equipment, Subcontract, and Other.
When Smart Contractor posts expense transactions in QuickBooks, it uses the appropriate QuickBooks sub-item for the transaction, depending on the expense category: Materials, Labor, Equipment, Subcontract, and Other.
Since each QuickBooks sub-item has a separate GL Account associated with it, expenses for transactions for each sub-item will be posted to the respective GL account.
For example, for the "Appliances" Job Phase in Smart Contractor, QuickBooks would have one item for "Appliances", plus 5 sub-items under the "Appliances" item: "Appliances Materials", "Appliances Labor", "Appliances Equipment", "Appliances Subcontract", and "Appliances Other Charge". A purchase transaction for a Refrigerator in Smart Contractor (with an expense in the Materials category) would be posted to the "Appliances Materials" sub-item in QuickBooks - and therefor to the GL Account associated with "Appliances Materials", which is the materials expenses account.
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