Balance sheet syncing
Balance sheet syncing is currently only available with the Xero and Quickbooks Online integrations.
Breww can create journal entries in your accountancy software to keep your balance sheet and COGS up-to-date as you move costs through Breww from purchase to production to sale.
The following is important. Please ensure you read and understand the following section on Breww-controlled accounts before enabling balance sheet syncing.
To ensure that the balance sheet syncing between Breww and your accountancy software is as robust as possible, Breww will regularly check for differences in the value of any stock item, WIP, or product finished goods account. These are referred to as Breww-controlled accounts.
If the value in your accountancy software is ever different from that in Breww, Breww will assume something was missed and make a correcting entry. This means that if you ever make a manual change to these accounts directly in your accountancy software, it will automatically be adjusted out by Breww using your chosen Stock adjustments account.
Because of this, we recommend setting up brand-new accounts for these areas. So, rather than use your existing Raw materials, WIP or Finished goods accounts, create new ones to be used only by the Breww integration, such as:
- Breww: Raw materials
- Breww: WIP
- Breww: Finished goods
This way, it's clear that Breww should only use these accounts.
Before enabling balance sheet syncing, you'll need to import into Breww the accounts to which you want these costs synced. You will need an account for each of the following sections.
Breww area | Required type | Breww controlled | Description |
|---|---|---|---|
Stock items | Asset | Yes | These will be the accounts that hold the value of the landed cost of all stock items in your Breww account, added either through inventory receipts or adjustments. |
Inventory receipt additional costs | Asset, Expense | No | These accounts will hold the value of additional costs on an inventory receipt. After uploading the inventory receipt, these will be moved to the receipt's stock item accounts. |
WIP | Asset | Yes | This will be where the value of all in-progress batches is held. |
WIP losses | Expense | No | Any batches completed without being packaged will have their costs allocated here. |
Stock adjustments | Expense | No | Any adjustments to the value of in-stock stock items or finished goods will be made into this account. |
Batch other costs | Asset, Expense, Liability | No | These will be the accounts that are drawn from when utility/other costs are added to a batch. They can be set per-cost type. |
Finished goods | Asset | Yes | These will be the accounts that hold the value of the value of all products (finished goods) in your Breww account. This can be set on a per-product basis. |
Cost of goods sold | Expense | No | These will be the accounts to which the cost of any dispatched products will be moved. This can be set on a per-product basis. |
Accrued liabilities | Liability | No | This will be used when an inventory receipt is 'Added to stock' but hasn't yet been 'Invoiced by supplier'. The value added to stock will be temporarily held in this account until the receipt is invoiced, at which point it is reversed. |
Setup offsetting account | Asset | No | After you enable balance sheet syncing, Breww will update the balances of your chosen accounts in your accountancy software to match their current value in Breww. All changes are moved to this account, allowing you to reconcile the differences to their correct accounts. We recommend setting up a brand-new account called "Breww: Setup offsetting account" for this purpose. |
Once you have created and imported the required accounts and are ready to enable balance sheet syncing, go to your accountancy integration dashboard in Integrations -> Accountancy -> Actions -> Configuration. From there, click the Enable button on the Balance sheet syncing row in your Data syncing section. This will take you through the process of selecting the accounts you would like to use and enable balance sheet syncing.
Breww will create a journal entry in your accountancy software whenever you make a change in Breww that moves costs from one account to another.
Breww can create up to three journal entries when creating an inventory receipt. If an inventory receipt is marked as "Added to stock" but hasn't been invoiced, Breww will post an entry debiting the landed cost of the stock items into their accounts and crediting your "Accrued liabilities" account. Once this inventory receipt is then "Invoiced by supplier", Breww will create an entry reversing the accrued liability entry (if it created one at all).
When marked as "Invoiced by supplier", Breww will upload the inventory receipt as a bill or supplier invoice in your accountancy software. This will credit your chosen stock item accounts. If any additional costs have been added to the inventory receipt, their cost will be moved from their account to stock item accounts so that the full landed cost of the stock items is recognised.
If the accounts for the two products are different, a journal entry will be made, moving the product's value between the accounts. If any stock items are used or returned to stock during the assembly or disassembly, the cost of the stock item will be moved between its account and the relevant product's account.
When adding a stock item to a batch, a journal entry will be made moving the cost from the stock item's account to your WIP account.
When adding a utility/other cost to a batch, either automatically or manually, a journal entry will be made, moving the cost from the utility costs account to your WIP account.
When you package anything from a batch, a journal entry will be made moving the cost from your WIP account to that product's finished goods account.
When dispatching an order, Breww will create a journal entry moving the value of the dispatched products from their finished goods accounts to their COGS accounts. The value of any stock item products will be moved directly from their stock item accounts to the COGS sold account.
Any stock adjustments, either made manually or through a stock take and made either to products or stock items, will create a journal entry adjusting the value of the relevant accounts to or from your "Stock adjustments" account. This includes making changes to the price per item of existing stock item stock.
If nothing has been packaged from the batch, completing it will move its value into your chosen "WIP losses" account. Otherwise, the cost of the batch will have already been transferred to its packaged products.
If you update the costs of a batch at any time, for example, by updating the ingredients or quantity of finished goods, Breww will attempt to update the existing journal entries it already created for that batch, and if the batch has been dispatched, the journal entries for any affected invoices. This helps keep the number of journal entries created by Breww to a minimum.
However, if the journal entries fall within a locked period in your accountancy software, Breww will instead create a new "Adjustment" entry to account for the change.
As part of making this feature as robust as possible, Breww will regularly check for differences in the value of any stock item account, WIP account, or product finished goods account. If the value in your accountancy software is different from that in Breww, Breww will assume something was missed and make a correcting entry, moving the difference to/from your chosen "Stock adjustments" account. This ensures that if any journal entry is ever missed, your balance sheet is always kept corrected and up-to-date.
The majority of entries made by Breww will be synced to your accountancy software three times a day. However, entries for your invoices and inventory receipts will be created at the point the invoice or inventory receipt is uploaded to keep your COGS up-to-date in real-time.