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 breww controlled accounts 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 enabling balance sheet syncing 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 required accounts 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 how does it work? 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 inventory receipts when an inventory receipt is marked as "added to stock", breww will post an entry debiting the landed cost of the stock items into their accounts and crediting your "accrued liabilities" account the associated supplier invoice reverses this "accrued liabilities" entry when it becomes finalised, but in the meantime, the "goods received not invoiced" are correctly represented on your balance sheet supplier invoices when a supplier invoice is finalised, breww will upload it 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 supplier invoice, their cost will be moved from their account to stock item accounts so that the full landed cost of the stock items is recognised breww will also post an entry crediting the landed cost of the stock items into their accounts and debiting your "accrued liabilities" account if the goods have already been received, this will have the effect of reversing the "goods received not invoiced" journal entry posted by the inventory receipt however, if you are invoiced before receiving the goods, this will mean that the "goods invoiced not received" values are represented correctly on your balance sheet product assembly/disassembly 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 adding stock to a batch 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 adding a utility/other cost to a batch 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 packaging a batch 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 dispatching an order 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 stock adjustments 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 completing a batch 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 updating costs on a batch or invoice 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 checking for discrepancies 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 how often will breww sync these balance sheet changes? 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 why does the valuation in my accountancy software not match my stock valuation in breww? there are two potential reasons your stock valuation in breww might not match the valuation you see in your accountancy software on the same date stock valuation wastage setting breww allows you to choose how you'd like wastage to be accounted for when performing its stock valuations, which is further explained here stock value & wastage docid\ jbeopu voebmldiycbusy when syncing values to the balance sheet in your accountancy software, breww syncs the exact cost to produce from raw materials > wip > finished goods, equivalent to the "ignore wastage" stock valuation setting if you would like your valuation in breww to match the value synced to your accountancy software's balance sheet, you will need to update your "wastage option" to match by setting it to "ignore wastage" cost changes made after the stock valuation is run changes to costs made after breww's stock valuation has been run do not update the valuation they are fixed at the point they are created for example, changes to utility/other costs on a batch made after the stock valuation will not update the costs of anything in your stock valuation however, breww will retrospectively update the journal entries made in your accountancy software if they are not within a locked period this means that if you compare a stock valuation in breww against the value of your balance sheet on the same date, but much later after changes have potentially been made to the period in breww, you may find that the valuations differ