QuickBooks Online Integration - Basic

Integrating your DEAR Inventory and QuickBooks Online (QBO) accounts allows DEAR Inventory to become the central point of all inventory management within your business. This means that all inventory-related purchases, sales, and manufacturing activities are performed in DEAR Inventory and then synchronised over to QBO.


NOTE: If necessary, you can easily switch between accounting apps, such as changing from Xero to QuickBooks Online, switching from one QBO organisation to another, or disconnecting Xero/QBO to use DEAR as a standalone accounting system. For more information, refer to Switching Accounting Integrations.


We recommend reading the Getting Started Guide in conjunction with this setup article. 


DEAR Inventory supports integrating with:

  • QuickBooks Online Plus or Essentials.


DEAR Inventory DOES NOT support integrating with:

  • QuickBooks Desktop.


NOTE: For QuickBooks Online Plus, turn off quantity tracking for products. If quantity tracking is on, you may have duplicate COGS entries created in QuickBooks due to DEAR creating COGS entries and QuickBooks also creating its own COGS entries for the same transaction and experience synchronisation errors. 


Prerequisites:

  • Open a QuickBooks Online Plus or Essential account (trial account is sufficient).


Table of Contents



Setting up Accounts in QBO

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The chart of accounts is the list of all accounts your organisation has available to record your transactions and is important for classifying your transactions correctly and keeping your accounts accurate.


NOTE: You will need a QuickBooks Online PLUS or ESSENTIALS account to correctly integrate with DEAR.


NOTE: If you are using QBO, you must create/manage your accounts from QBO. They will then be imported into DEAR when you next synchronise your accounts. You can view your Chart of Accounts in DEAR by going to Settings -> Reference Books -> Financial -> Chart of Accounts, but it will be read-only. 


Before starting your integration, there are some accounts that must be created in QBO first. You can add more accounts to suit your business requirements – if you are unsure, consult with your accountant or bookkeeper before adding or editing any accounts. 


The accounts needed for DEAR to function correctly are listed below with their required settings.


Already created by QBO:

  • Sales Tax (GST, VAT...),
  • Sales/Revenue,
  • Inventory/Inventory Control.


Required accounts: 

You may not be asked to map all of these accounts when connecting to QBO for the first time, however, they allow you to fully make use of the DEAR functionality. You can create these accounts in QBO now or create them later at a more convenient time.

AccountAccount TypeDetail Type
Accounts Receivable (A/R)Accounts receivableN/A
Accounts Payable (A/P)Accounts payableN/A
Inventory DiscrepancyExpenseOther miscellaneous expense
Cost of Goods SoldCost of Sales Supplies and materials 
Supplier DepositsCurrent assetOther current assets
Customer CreditsCurrent liabilityCurrent liabilities



Optional Accounts:

Inventory Accrual/Stock in Transit (requires Inventory Accrual to be enabled)

AccountAccount TypeDetail Type
Inventory Accrual (Goods Received, Not Invoiced)Current Assets Other current assets
Stock in Transit (Goods Invoiced, Not Received)Current AssetsOther current assets


Gift Card Liability (requires Gift Cards to be enabled)

AccountAccount TypeDetail Type
Gift Card LiabilityCredit CardCredit Card



Creating accounts in QBO:

  1. In QBO, navigate to Settings -> Your Company -> Chart of Accounts. The Chart of Accounts will be loaded based on the industry that you specified when initially setting up QuickBooks Online and you may find that some of the accounts may already be present. Make sure there is an account for each of the ones listed above and that they have the correct settings. 
  2. Select New. Enter the account details according to the required settings above, then click Save and Close to finish (or Save and New if you want to add another account straight away).
  3. Once you have added all the relevant accounts, you're ready to begin the integration with DEAR Inventory.



Turn off Inventory Tracking in QBO

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DEAR does not support quantity or inventory tracking in QBO. If quantity tracking or inventory tracking is turned on in QBO, you may have duplicate COGS entries created in QuickBooks due to both systems creating their own COGS entries for the same transaction and experience errors during synchronisation. 


To turn off quantity/inventory tracking in QBO:

  1. Navigate to Settings -> Your Company -> Accounts and Settings, then click the Sales tab. 
  2. In Products and Services, ensure Track quantity and price/rate and Track inventory quantity on hand are turned Off.
  3. Save your changes to finish.



NOTE: The inventory type products previously tracked in QBO remain tracked even after tracking is turned off. To resolve the issue, delete the old products and create new products. See Replacing Products in QBO for more details. 



Connecting DEAR Inventory and QBO

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Once you have added all the relevant accounts, you can either connect to QBO (if you already have an account) or complete the DEAR signup process (if you don't). Consult the Getting Started Guide for help setting up your DEAR account.


Connecting QBO when you create a DEAR account

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If you don't have a DEAR account yet, you can start the integration process from QBO or from DEAR. 


NOTE: You will need a QuickBooks Online PLUS account to correctly integrate with DEAR.


Connecting from QBO:

  1. On your QBO Dashboard, click Apps, then on the Find Apps page, search for DEAR Inventory.
  2. On the DEAR Inventory page, you can review the features of DEAR Inventory. Once you're ready to integrate the two apps, click Get app now.
  3. On the window that appears, click Connect. This will grant DEAR Inventory access to your QBO account and start the integration process between the two applications.
  4. You will then be taken to the DEAR Inventory Trial Account setup page. Enter your information on the page, check the box signifying your agreement to the DEAR Inventory Terms of Service and Privacy Policy, then click Sign Up.


Connecting from DEAR:

  1. On the DEAR website, select Create free account
  2. From the Welcome screen, select an option.
    • I need help setting up my account – this option will sign you up to a free onboarding session that helps you set up sources for the chart of accounts, import customers, suppliers, products, and set up external integrations with eCommerce systems (sales channel), B2B and POS integrations.
    • Set up a demo company with test data – this option will populate your DEAR account with test data from our demo company. You are free to play around with this data any way you want.
    • I don't need help – this option will set up a DEAR account with empty data, meaning that you will need to set up your own data before you can start using DEAR.
  3. On the sign-up screen, you will be asked to enter some information about your business. In the Chart of Accounts source, select QuickBooks Online.
  4. You will receive an activation email from DEAR, click the link in the email. You will be redirected back to DEAR Inventory and asked to choose a password.
  5. You will be taken to the DEAR dashboard, with a non-authorised QBO connection. If you chose 'I need help with setting up my account', the Dashboard will show a Connect to QuickBooks button. If you chose 'Set up a demo company with test data' or 'I don't need help', click the QBO logo, then click Connect to QuickBooks.
  6.  Enter your QBO login details and authorise the connection. 


  1. The Chart of Accounts, Payment Terms and Tax Rules will be imported from QBO. Navigate to Reference Books -> Account Mapping to finish mapping your accounts correctly. See More Account Mapping for further information. 
    • DEAR can only map accounts between systems if they have the same settings. If you are missing an account, you can go back to QBO and create them (check the required account settings above), sync, then reload the Account Mapping page.


If you are setting up DEAR for the first time, you will need to enter the opening balances from your QBO accounts into DEAR – see Manage Opening Balances for more information. 


You can continue to set up your Products, Suppliers, and Customers. Refer to the Getting Started Guide for more help getting set up.


Connecting an existing DEAR account to QBO

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To connect DEAR Inventory and QBO:

  1. From the left menu, click Integrations, then click the QBO option. 
  2. Click Connect to start the QuickBooks Connect Wizard. You will be asked to log in to your QuickBooks account if you are not already logged in. DEAR is set to keep your data by default. You may toggle the button to No and choose which data to keep or discard.

  1. Next, you will be taken to the Accounts Mapping screen. Select the matching accounts from the dropdown list.  
    • The Connect Wizard will only map accounts between systems if they have the same settings. If you are missing an account in QBO (you may have additional accounts created in your DEAR Chart of Accounts), you can go back to QBO and create them, then click Reload accounts from QuickBooks to continue mapping.

  1. Next, you will be taken to the Tax Rules Mapping screen where DEAR will attempt to map your tax rules from QBO automatically. 
    • The Connect Wizard only allows tax rule mapping between QBO and DEAR if the tax rates and Sale/Purchase properties are equal. If DEAR has tax rules that do not have an equivalent in QBO, you will have to create these tax rules in QBO first. Then, click Reload tax rules from QBO to continue mapping.


  1. Next, you will be asked to map the Payment Terms. If DEAR has payment terms that do not have an equivalent in QBO, you will have to create these tax rules in QBO first. Then, click Reload tax rules from QBO to continue mapping.



  1. You will then be asked to confirm that you want the two apps to be integrated. Note that the data migration process is irreversible and that all DEAR Inventory transactions will be updated with new accounts from QuickBooks. To go ahead with the operation, enter I would like to update all transactions in the box, then click Confirm to start synchronising data between DEAR Inventory and QBO.  
  2. A message informs you that the migration will continue in the background and that you will receive an email when the process is completed. Now your DEAR and QBO accounts are synchronised. 


More Account Mapping

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To fully enable all of the DEAR functionality, you can finish mapping the required and optional accounts. Create any missing accounts in QuickBooks Online if you haven't already, synchronise your data, and navigate to Settings -> Reference Books -> Financials -> Account Mapping. Select the equivalent accounts from the dropdown list and Save your changes. 


DEAR can only map accounts between systems if they have the same settings. If you are missing an account, you can go back to QuickBooks and create them (check the required account settings above), sync, then reload the Account Mapping page.


NOTE: You can use DEAR without completing this account mapping. If you attempt to use functions that are linked to an unmapped account, DEAR will report an error and may be unable to complete the operation.



Using QBO Integration Settings

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Once your DEAR Inventory account is set up, you'll be able to locate the QuickBooks Online Integration page by selecting Integration from the right-hand menu, then QBO.  


The QBO Integration page will contain the details of the integration (on the left-hand side of the page), which explain the flow of data between DEAR Inventory and QBO.


Created in QuickBooks, sent to DEAR

  • Chart of Accounts: Any changes in the Chart of Accounts in QuickBooks will be synced to DEAR. The Chart of Accounts is read-only in DEAR.
  • Tax Rules: Any changes in Tax Rules in QuickBooks will be synced to DEAR. Tax Rules can be edited in DEAR, but can only be created in QBO. See Tax Rules for more information. 
  • Payment Terms: Any changes in Payment Terms in QuickBooks will be synced to DEAR. Payment Terms are read-only in DEAR.


Created in DEAR, sent to QuickBooks

  • Purchase Orders: (Optional) All Purchase Orders authorised in DEAR will be exported to QuickBooks if the Blind Receipt box is not checked.
  • Purchase Credit Notes: Purchase Credit Notes authorised in DEAR will be exported to QuickBooks as Vendor Credits.
  • Sale Quotes/Estimates: (Optional) If the Skip Quote option is not checked, all Sale Quotes authorised in DEAR will be exported to QuickBooks as Estimates.
  • Credit Memos and Sale Credit Notes: Sale Credit Notes authorised in DEAR will be exported to QuickBooks as Credit Memos.
  • Customer Credits.
  • Supplier Deposits.
  • Journals.
  • Transfers.


Can be created in both, synchronised both ways

  • Vendors/Suppliers.
  • Customers.
  • Any Bill/Sale/Purchase Payments or Refunds.
  • Products/Items: Creating inventory in both QBO and DEAR can cause inventory tracking issues. For more information, see here.
  • Bills or Purchase Invoices: Purchase Invoices authorised in DEAR will be exported to QuickBooks as Bills. Purchase Invoices can be optionally imported from QBO. 
  • Sale Invoices: Sale Invoices created in DEAR are automatically exported to QuickBooks. Sale Invoices can be optionally imported from QBO. 


Within the QBO Integration page, you can control whether your integration is enabled or disabled and modify any other integration settings. We recommend taking a look at your settings before putting through new transactions. 


From the Integration Settings screen, set the following options:

  • Export Purchase Orders to QuickBooks: Turn exporting of Purchase Orders to QBO off and on.
  • Export Sale Quotes to QuickBooks: Turn exporting of Sale Quotes (as Sale Estimates) to QBO off and on.
  • Export COGS: Allows you to enable or disable the exporting of cost of goods sold transactions to QBO. COGS transactions are created by DEAR automatically when the Ship stage is authorised on Sale. You can manually void/recall export of these transactions from QBO with the COGS Maintenance tool. 
  • Class: See Class and Location Tracking.
  • Location: See Class and Location Tracking
  • Import Purchase Invoices: Optionally import purchase invoices (bills) from QBO. (Purchase invoices created in DEAR are automatically exported to QBO.)
  • Auto-receive stock when loading purchase invoices from QuickBooks: This option is only visible if Import Purchase Invoices is enabled. If enabled, stock will be received into your inventory automatically, once a purchase invoice is loaded from QBO. If disabled, stock receiving must be carried out manually. 
  • Import Sale Invoices: Optionally import sale invoices from QBO. (Purchase invoices created in DEAR are automatically exported to QBO.)
  • QuickBooks fulfilment mode when loading sale invoices from QuickBooks: This option is only visible if Import Sale Invoices is enabled. Select whether picking, packing and shipping are set to auto on sale invoices imported from QuickBooks. 
  • QuickBooks location to be used for purchases and sales loaded from QuickBooks: This option is only visible if Import Purchase Invoices or Import Sale Invoices is enabled. 
  • Auto-Synchronisation: See Autosynchronisation Settings



Autosynchronisation Settings

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You can choose to sync DEAR systems with QBO manually or automatically. Toggle Autosynchronisation to Yes to display additional auto-sync options. You can set the start date, start time, sync frequency, and the alert type for any errors raised during the synchronisation process.



There are two ways a user can be notified of errors: 

  • Internal: These error notifications will be available within the Notifications tab in DEAR. For more information, see Notifications.
  • Email: Users in the specified mailing list will receive an email notification about failed auto-sync errors. For information on creating a mailing list, see Notifications - Mailing Lists.


NOTE:

  • Status of each auto-sync can be found on the Log page in Reports in System Logged in.
  • Do not perform manual synchronisation during active autosynchronisation.
  • During DEAR scheduled maintenance operation routines, refrain from running autosynchronisation.


Class and Location Tracking 

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Classes and Locations are optional fields used to give extra information on QBO invoices. Location is applied to the entire document, while Class is applied either to line items or to the entire document. This is where they are displayed on the QuickBooks invoice:


Class and Location mapping allows you to select fields from the DEAR sales/purchase document header to export to QBO and be displayed in these fields. 



You will need to enable tracking of classes and locations in QuickBooks to use this feature. If class/location tracking is not enabled, these fields will be left blank on the QBO invoice. 


To enable class and location tracking in QBO:

  1. Navigate to Settings -> Your Company -> Accounts and Settings, then click the Advanced tab. 
  2. In Categories, turn Track classes and/or Track locations  On
  3. Save your changes to finish.



For more information, see Using Classes and Locations in QuickBooks Online.  



Cost of Goods Maintenance

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IMPORTANT: These features are for maintenance purposes only. Exporting COGS transactions is automatically performed daily.


You can manually export COGS transactions, or void (recall) previous exports, for a specific period using the options in the Cost of Goods Sold Maintenance section. Simply specify the time you want to adjust (the selected dates are included in the period), then click either the Export COGS to QuickBooks or Void COGS in QuickBooks button, depending on the action you're taking.




Replace Products in QBO from DEAR

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You may find that you are still experiencing duplicate COGS in transactions even if inventory tracking has been disabled. This is possible if inventory tracking for a product has been enabled in QBO at any point. 


In this case, you can replace all products at once to fix the issue. All existing items in QuickBooks will be rewritten with products from DEAR. 


NOTE: Product Names must be unique in DEAR to be successfully exported into QBO.


Duplicate Entries

The process will start by checking for uniqueness of each product name in DEAR using the first 100 symbols of a name. 

  1. If there are no duplicates, the replacing product process will begin.
  2. If a single duplicate product name is found, an error message will pop up. If this happens, you shouldn't start replacing products in QBO until you are sure all product names are unique. 


Progress Status

 During the replacement process, the progress status will be displayed on the screen.

  1. Removing all data from QuickBooks. 
  2. Exporting products from DEAR.
  3. Operation status –
    • Products in QuickBooks Online were replaced successfully.
    • Products in QuickBooks Online were not replaced, due to the following error: <Error message>.





Connecting to Another QBO Organisation

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If you decide to connect DEAR to a different QBO organisation, click the Change Organisation button. You will be walked through the QuickBooks Connect Wizard to finish account and tax mapping. This is essentially the same process as connecting to QuickBooks for the first time. 


See Switching Accounting Integrations and QuickBooks Connect Wizard for more information. 



Disabling your QBO Integration

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If you decide that you want to remove the integration between DEAR and QBO permanently, click the Disable Integration button, as shown below. You can continue to use DEAR as a standalone accounting system. 




Export Historical Transactions

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You can export historical data from DEAR to QBO, which registers all documents and related items (products, vendors, customers, etc.). You might use this feature if you want to export all data to QBO for a particular date range. Simply select a start date and then click the Export Historical Data button, as shown below.


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