Financial Exchange: Setup QuickBooks Desktop Connection Now in Point of Sale

Your daily point-of-sale business transactions, such as buying, receiving, and selling goods, as well as keeping track of inventory and […]

Your daily point-of-sale business transactions, such as buying, receiving, and selling goods, as well as keeping track of inventory and customers, are tracked by QuickBooks Desktop Point of Sale. In contrast, QuickBooks Desktop assists you with bill payment, cash flow management, customer invoicing, and financial report generation. Information sharing between these two systems is called a financial exchange, and it often takes place at any time or as part of your end-of-day procedure. Financial Exchange prevents you from entering the information twice, thus reducing your effort. The aspects of both programs that are permitted during Financial Exchange are described in this article.

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Financial Exchange Setup

The following prerequisites must be fulfilled before you may connect QuickBooks Desktop Point of Sale to your QuickBooks Desktop program and share data:

  • Install QuickBooks Desktop Pro, Premier, or Enterprise in supported versions on the same machine as POS. Be aware that POS version 18 will function correctly with any supported QuickBooks Desktop version.
  • Both your QuickBooks Desktop Point of Sale and QuickBooks Desktop files should be backed up. Give the backup a name that will help you distinguish it, like QBPOS backup before QB.
  • Follow these steps in QuickBooks Desktop:
    • Activate sales tax
    • Turn on the stock
    • Set your options so that Financial Exchange can be used without QuickBooks Desktop being open. Although Finance Exchange is best used with QuickBooks Desktop open, it can also be used when the application is closed. To accomplish this, set the following QuickBooks parameters:
  • Choose Preferences under Edit from the menu.
  • Select Integrated Applications from the left window, and then select the Company Preferences option.
  • Select QuickBooks Point of Sale, then Properties, from the Applications list.
  • Choose the option to let this program read and modify this company file under the Access Rights tab.
  • In both the Properties and Preferences windows, click OK.

How to Initiate a Financial Exchange

Before beginning a financial transaction, remember the following:

  • Only the Server Workstation can be used for financial transactions.
  • You must have your financial software preferences configured to allow automatic access during exchanges or have your QuickBooks Desktop Company file open.
  • A summary window that appears when the exchange is finished shows how many records were exchanged and whether any mistakes took place. To learn more about any errors those is shown and for assistance, select View Activity Log from this box.

There are two methods for carrying out a financial transaction:

As Part of the Day’s End Process

  • Select Point of Sale > End of Day Procedure on the QuickBooks Desktop Point of Sale Server Workstation.
  • Make sure the Exchange Data with QuickBooks check-box is selected on the End of Day window.
  • Select additional End of Day choices as desired.
  • Choose OK.

Manual Switch

  • Choose Financial Center, and then choose QuickBooks Now, from the financial menu.
  • If you want to ensure that you have the most recent QuickBooks Desktop Point of Sale data or if you want to perform mid-day billings from QuickBooks Desktop, you can use manual exchange.

Affected Accounts, Activities, and Data during the Exchange

Data Exchanged During the Transaction

Data is sent from Point of Sale to QuickBooks Desktop and vice versa when completing financial exchange.

Note that we strongly advise you to add or change items, customers, and vendors in POS until after you have started sharing data with QuickBooks Desktop in order to minimize discrepancies and save time during data review.

From Point of Sale to QuickBooks Desktop

  • Updated Customer Data and new Customers, Except Account Balances and limits
  • Updated Vendor information and New Vendors
  • Data Regarding Sales (Receipts)
  • Obtaining Knowledge (Vouchers)
  • Adjustments to Inventory Quantity or Cost (as a summary adjustment Journal Entry)
  • New terms for Vendor Payments

From QuickBooks Desktop to Point of Sale

  • New Clients
  • Updated Customer Account Balances and Limitations
  • New Suppliers
  • New Terms for Vendor Payments

Activities done between QuickBooks Desktop and QuickBooks Desktop Point of Sale

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

Add/track inventoryX
Order and receive merchandiseX
Make sales and collect sales taxX
Run sales and merchandise reportsX
Add customers or vendorsXX
Enter vendor billing info (invoices)XX
Track cost of goods and expensesX
Pay bills and sales taxesX
Invoice customersX
Process payrollX
Run financial reportsX
Banking activitiesX

Accounts Affected by Financial Exchange

Accounts affected in QuickBooks DesktopQuickBooks Desktop Point of Sale data affecting the Accounts
Inventory Asset AccountVouchers, Return vouchers, Sales receipt, Returns, Adjustments, and other transactions
Cost of Goods SoldSales and Returns
Bank accounts, undeposited funds and cash in drawer AccountsSales, Returns, and Pay outs
Accounts PayableVouchers and Return vouchers
Accounts ReceivableSales and Returns
Unbilled Purchases AccountVouchers
Document Offset accountAdjustments
Sales Tax Payable accountSales and Returns
Gift certificate accountsSale and Redemption of Gift Certificate
Vendor discounts accountVouchers
Sales related income accountsSales and Returns
Purchasing expense accountVouchers
Shipping and handling accountSales
Paid out expense accountPay outs

Default Accounts Mappings

QuickBooks Point of SaleQuickBooks AccountAccount Type
Cash in DrawerCash in DrawerBank
CheckUndeposited FundsOther Current Asset
Credit CardUndeposited FundsOther Current Asset
Debit CardUndeposited FundsOther Current Asset
Gift CertificatesGift Certificates OutstandingOther Current Liability
Gift CardGift Cards OutstandingOther Current Liability
Accounts ReceivableAccount ReceivableAccounts Receivable
Sales TaxSales Tax PayableOther Current Liability
Customer Order Deposit TakenCustomer DepositsOther Current Liability
Purchase ClearingUnbilled PurchasesOther Current Liability
Voucher AdjustmentPurchase DiscountsCost of Goods Sold
Freight InFreight & Shipping CostsExpense
Voucher FeeFreight & Shipping CostsExpense
Accounts PayableAccounts PayableAccounts Payable
Document OffsetPOS Inventory AdjustmentsCost of Goods Sold
ShippingShipping and Delivery IncomeIncome
Pay out ExpenseCash Drawer PayoutsExpense
TipsEmployee Tips PayableOther Current Liability
POS Balancing AdjustmentsBalancing AdjustmentsOther Expense

Default Item Account Mappings

Whenever various item categories are purchased, item sales (Income), Cost of Goods Sold (COGS), and inventory value (Asset) quantities are sent to the designated item accounts. As new things are added to storage, default profiles are given to them. You can choose to assign accounts to individual things on the item record in Point of Sale stock, make changes to all current goods, or create sub-accounts by department.

POS Item TypeIncome AccountCOGS AccountAsset Account
InventoryMerchandise SalesCost of Goods SoldInventory Asset
Non-inventoryMerchandise SalesPurchases- Resale ItemsPurchases- Resale Items
ServiceService SalesSubcontracted servicesSubcontracted services
AssemblyMerchandise SalesCost of Goods SoldInventory Asset
Special OrderMerchandise SalesCost of Goods SoldInventory Asset
GroupNot applicable. Group items will map to their component items.

Set up QuickBooks Desktop Connection Now in Point of Sale

  • Go to Preferences > Company > Financial > Set up QuickBooks Desktop Connection Now in Point of Sale from the File menu.
  • If you’ve already logged in to QuickBooks, you might receive the following message:
  • Use this company file as before or I’d like to select a new company file.
  • Select let me select a new company file option every time.
  • Making a new selection has no impact whatsoever on your data.
  • You’ll be asked to launch QuickBooks and log in as the administrator. Choose Next.
  • Data sharing between QuickBooks Desktop Point of Sale and your accounting software is now possible. Press Finish button.

How to overcome the Problem with Financial Exchange

Due to two QuickBooks windows being open on the server, there is no financial exchange at day’s end. QuickBooks Financial won’t open on the server. Nothing is open in Task Manager, and all PCs running QuickBooks Financial are shut down. Any of the following could be a reason for the error you’re receiving:

  • QuickBooks Desktop is currently logged in by a non-admin user.
  • The most recent release of either QuickBooks Desktop Point of Sale or QuickBooks Desktop is not installed.
  • In QuickBooks Desktop, the Integrated Applications preference is broken.

We will outline several steps you can take to fix the problem

Integrated Applications should be Updated

  • In QuickBooks, you will have to select Preferences from the Edit menu option.
  • Then select the Company Preferences tab after moving to the Integrated Applications tab.
  • Choose QuickBooks Desktop Point of Sale from the list of applications, then click Properties.
  • Note the name in the Login as field on the Access Rights button and uncheck the box next to Allow this program to access and edit this company file.
  • To save the changes, click OK.
  • Now, click the box that says Allow this application to read and edit this company file.
  • Choose the name that was previously used in the Login as field. Choose OK twice.
  • Launch QuickBooks Desktop Point of Sale’s money exchange.

Refresh the Channel of Communication between Point of Sale and QuickBooks Desktop

  • Open both programs at once.
  • Go to File in POS, select Preferences, and then select Company.
  • Choose Financial, uncheck the box that says Use with QuickBooks Financial Software and then save your changes.
  • Select Preferences from the Edit menu on QuickBooks Desktop.
  • Click the Integrated Applications tab to continue.
  • Search for QuickBooks Point of Sale under the Company Preferences tab, and then click Remove.
  • Remove this program warning box: click YES, and then click OK.
  • Go to Financial > Financial Center > Set up QuickBooks Connection Now in POS to complete the setup by following the Connection Wizard’s instructions.
  • Run a financial exchange once more when you’re finished to make sure you can still handle it.

We believe the aforementioned guide can assist you regarding Financial Exchange. Hopefully, this article provides you detailed overview on Financial Exchange including its setup and process. But if you are unable to comprehend it or become stuck at any point, our Dancing Numbers experts will help you do your task quickly and effectively.

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Frequently Asked Questions (Faqs)

How can I Change User Access as an Admin?

You can alter user access as an admin as a workaround. This is how:

• Open the Windows Start menu after closing QuickBooks Desktop.
• Select User Accounts after opening the Control Panel.
• Locate the QBDataServiceUserXX for QuickBooks Desktop in your version. Search for QBDataServiceUser30 in QuickBooks Desktop 2020. Look for QBDataServiceUser29 for the 2019 version.
• Choose change the account type option and then select Administrator. Select Change Account Type after that.
• To save your changes, click Apply.

How can I Resolve the Errors While Doing the File Exchange?

Please make sure QuickBooks Desktop has the Server Host Service turned on. We may be encountering issues with the file exchange because of this. After that, take the next few steps:

• Go to the File menu in QuickBooks Desktop and select Switch to Single-User Mode.
• Select Preferences and then Integrated Applications from the Edit menu.
• Select the tab for Company Preferences. Click Remove after selecting QuickBooks Desktop Point of Sale.
• To save adjustments and launch a new Financial Exchange, press OK.

It is preferable to contact our Support Team so they can look into this if the problem is still not resolved.

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