QuickBooks Data File Diagnosis and Data Conversion
Winged Disc Technologies was recently called in for consultation to solve an urgent business issue: How to correctly set up QuickBooks Price Levels in a large inventory system with multi-level pricing.
This is a situation in which QuickBooks Data Conversion more than pays for itself.
Problem: QuickBooks Price Level Setup
Our client had their prices for inventory items in QuickBooks at a mark-up of 40% above cost. But they were seeing in financial reports that this was not actually being applied in the way they had intended.
In addition, the client needed to give certain customers different pricing, which is possible in QuickBooks using Price Levels. However, our client did not know how to use this feature correctly.
A huge list of different price levels had been assigned to customers in an un-managed fashion in QuickBooks. The pricing being given to customers was unpredictable, not logical and all over the board.
Setting Price Levels in QuickBooks is a powerful feature; and can have far-reaching results. If not applied correctly, reports will not balance.
Solution: Quickbooks Custom Inventory Pricing
- We took our client’s QuickBooks company data file and moved it on to our secure server where we have QuickBooks tools, like QODBC. Using these powerful tools, we can make mass changes in QuickBooks files. We ran an update query in Microsoft Access using QODBC to change the inventory item prices to be 140% of the QuickBooks calculated average cost of the items; rounding the prices to the nearest $.01.
- Then we set up price levels that will give the ability to assign pricing with a mark-up of 35%, 30%, 25%, 20%, 15%, 10%, or 5% above cost. This required a calculation of the percentage decrease in price that would be needed to reduce the base price of cost – plus 40% to the desired percentage mark-up (e.g. 1.25 is derived by reducing 1.40 by 10.71%).
- Our client now had a list of the customers that exported out of QuickBooks; and they set the appropriate price level for each customer.
- We used this data over the following weekend (because this type of operation can’t be done during business hours) to update our client’s QuickBooks to the new corrected settings; by updating the price levels assigned to each customer.
Quickbooks Custom Inventory Pricing Project: Result
Our client now has specific and unique pricing for each customer. Once assigned to a customer, the mark-up pricing is automatically calculated and correctly distributed throughout the entire accounting system.
All financial reports are correct and balance.
Happy business – and business customers who are very happy to receive instant correct pricing and billing!
Need Help Integrating Inventory Management in QuickBooks?
Business Inventory Challenges
Effective inventory management is critical to the business profitability and growth. Inventory is also one of the most challenging processes to set up correctly in QuickBooks Enterprise and other consumer accounting solutions.
- Knowing Your Inventory – According to IBM, 79% of supply chain officers report that lack of visibility has a significant impact on supply chains.
- Inefficient Processes – Many inventory management systems are built on – or rely on – dated software or manual processes.
- Customer Demand – Customers needs are changing daily and businesses are looking to their distributors to allow for flexibility in orders.
Research shows inventory management can be a time-consuming and painful process for businesses.
- Sixty-seven percent of small businesses have to manage multiple points in their supply chain, such as different vendors and service providers, and 48 percent manage three or more points.
The top five challenges facing small businesses in managing their inventory include:
- Spending too much time manually counting inventory – 27 percent.
- Finding time to create a system to track inventory – 27 percent.
- Connecting sales and payments channels with inventory – 21 percent.
- Determining what tools exist, how much they cost and how to use them –18 percent.
- Not having a central dashboard that shows the status of inventory – 16 percent.
The research was conducted by Qualtrics and is based on 1,000 interviews held Oct. 16-26. The research was completed online among respondents who are either owners or managers of U.S. small businesses, or self-employed individuals.
Business Process Management
Intuit QuickBooks Enterprise Solutions is the right solution to help you increase the efficiency of your large business.
• Incredibly easy to use
• Fast to implement
• Very cost-effective
• Need QuickBooks Custom Reporting or QuickBooks Payroll, QuickBooks Custom Payments or Custom Inventory Solutions?
• QuickBooks custom programming, QuickBooks custom report generation or QuickBooks application integrations – Contact Us
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Winged Disc Technologies – Certifications
- Intuit Premier Reseller
- Quickbooks® Certified ProAdvisor, 1999 to Present
- Advanced Quickbooks® Certified ProAdvisor
- Enterprise Quickbooks® Certified ProAdvisor
- Point of Sale Quickbooks® Certified ProAdvisor
- Sleeter Group Quickbooks® Consultant
- QQube Certified Solution Provider
- Microsoft Partner Organization
- Microsoft Certified Professional
- Microsoft Small Business Specialist
- ACCTivate! Consulting Partner
- Method Certified Consultant
- Concur Platinum Advisor
- Certified Small Business Advisor – Corelytics/Mentor Plus
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