Overview
Boatyard automatically tracks the cost of parts through your QuickBooks Online account from the time they are purchased to the time they are sold. This update ensures your Cost of Goods Sold (COGS) reporting in QuickBooks accurately reflects the cost of parts that have been sold through Boatyard invoices and retail sales.
How it works
When you purchase parts through a Boatyard purchase order and convert that PO to a bill in QuickBooks, the cost of those parts is posted to a holding account called BY Parts Clearing.
Boatyard automatically creates this account in your QuickBooks chart of accounts.
When those parts are later sold (either on an invoice or a retail sale) Boatyard automatically creates a journal entry in QuickBooks that moves the cost of the parts out of BY Parts Clearing and into your designated Cost of Goods Sold account. You do not need to create these journal entries manually.
This means:
When a Boatyard PO in QuickBooks is converted to a bill, the cost of the parts will be posted to the BY Parts Clearing account.
Before a part is sold, its cost sits in BY Parts Clearing. The balance in this account represents the cost of parts purchased but not yet sold.
When a part is sold, the cost moves automatically into your COGS account. The balance in BY Parts Clearing is reduced accordingly.
Over time, the balance in BY Parts Clearing should trend toward zero as parts are sold.
The BY Parts Clearing account
BY Parts Clearing is a Cost of Goods Sold account that Boatyard creates automatically in your QuickBooks chart of accounts. It is managed by Boatyard and should not be deleted or modified manually.
If your bookkeeper or accountant notices this account and asks about it, you can share the following:
It is a holding account created and managed by Boatyard
It should not be deleted or adjusted manually
The balance represents the cost of parts purchased through Boatyard but not yet sold
Journal entries posted to this account are created automatically by Boatyard when parts are sold
Using a different account
If you already have a Cost of Goods Sold account in QuickBooks that you use to track parts costs, you can tell Boatyard to use that account instead of BY Parts Clearing. Here's how:
In Boatyard, go to Settings > Integrations
Find the Parts Purchase Account field
Select your preferred account from the dropdown. The dropdown shows all COGS accounts currently in your QuickBooks chart of accounts.
Save your changes
From that point forward, Boatyard will use your selected account as the holding account for parts costs.
What triggers a journal entry
Event | Journal Entry Created |
Invoice synced to QuickBooks | Yes, for each part on the invoice |
Invoice updated and re-synced | Yes, journal entry is updated to match |
Retail sale completed | Yes, at time of payment |
Labor, flat rate, or misc charges sold | No, journal entries apply to parts only |
Frequently asked questions
What if I don't use purchase orders in Boatyard?
What if I don't use purchase orders in Boatyard?
The journal entry is still created when parts are sold. However, if parts costs were not posted to BY Parts Clearing through the PO and bill flow, your bookkeeper should be aware that the credit side of the journal entry may need to be reconciled manually.
Can I delete the BY Parts Clearing account?
Can I delete the BY Parts Clearing account?
No. BY Parts Clearing is required for the QuickBooks integration to function correctly. Deleting it will cause errors when Boatyard attempts to sync parts costs to QuickBooks.
What does it mean if the BY Parts Clearing account has a large balance?
What does it mean if the BY Parts Clearing account has a large balance?
It means there are parts that have been purchased through Boatyard but not yet sold. As those parts are sold, the balance will decrease. If you believe the balance is incorrect, contact Boatyard support.
Will this affect invoices or retail sales that were created before this update?
Will this affect invoices or retail sales that were created before this update?
No. Journal entries are only created for invoices and retail sales created after this update was deployed.