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Conversion Limitations: Quickbooks Desktop

We are aiming to cover all the possible scenarios of your source accounting system when converting it to the new system. However, the systems subtly vary on how they handle accounting, and it is not always possible to convert everything and for all your accounting period. It is important that you take your time to understand the limitations of our service.

Please click on conversion limitations for all systems to know more of these limitations.

Apart from the limitations listed in the article linked above, Quickbooks Desktop (QBD) also has the following specific limitations:

Out-of-balance transactions

There are instances where off-balance invoice or bill, or journals get posted in QBD. These transactions will cause an error during conversion and may affect the integrity of the migrated data, resulting to discrepancies and irregularities of affected accounts. In some cases, the conversion process cannot even proceed because of these off-balance journals or transactions.

Some debtor or creditor transactions might not be posted as expected

Due to various reasons, Dataswitcher might need to use a dummy customer or supplier account to align your AR and AP history. AR and AP auto-matching only occurs when the outstanding balance of the customer or supplier is 0.00

Dataswitcher will try to auto-allocate all customers and suppliers that have zero amount outstanding as of conversion date with a special algorithm. If you have posted directly to your AR or AP system accounts, this may cause discrepancy in your customer or supplier reports. Furthermore, AR and AP transactions are migrated as journal entries, especially, if such transactions are not matched to an invoice, receipt, bill, or payment. These discrepancies may require manual adjustments after migration.

Dataswitcher will try to ensure that your historical AP and AR reports are having the correct balances for all key dates (that is, as of end of a fiscal year and as of conversion date). In between these dates, the reports might show some discrepancies. When checking the AR and AP reports, please make sure that the data from QBD is correct. There are situations where open invoices do not show up in the summary but do show up in the detailed view in QBD. It is important to check the balances in any one of these dates:

1. Last transaction date in file

2. Conversion date (the date when your data moved to QBO)

3. On any end of a fiscal year

Alignment of AR and AP accounts only happens on these dates. Multiple accounts receivable and payable accounts will be merged into one as Quickbooks Online does not support having multiple of these accounts. The AR and AP accounts linked to QBD's Sales and Expense features will become the main (default) AR and AP accounts.

If you are transferring money between AR and AP accounts through journal entries, these will also be posted as journals. If you have purged a supplier or customer data from your file, its related transactions will be posted as journals. You might have to allocate debits to credits for customers or suppliers that have an outstanding amount as of conversion date.

If the total balances of both AR and AP accounts in the General Ledger, as shown in the Trial Balance or Balance Sheet, do not align with the total outstanding balance as shown in the Aging Summary in QBD, Dataswitcher will post these discrepancies to the outstanding balances of zCustomers or zVendors.

We will copy dates straight from the file

We will copy the dates straight from your QBD file. If the journals in your file are dated in the future, the transactions will also be posted in the future in Quickbooks Online.

Foreign-currency data will be converted in home-currency

All foreign-currency data will be converted in home-currency. The historical exchange rate in QBD will be used to do the conversion.

Financial start date

When your conversion start month does not coincide with the first month of your fiscal year, this may cause some discrepancies in your profit and loss accounts, as well, as in your Retained Earnings, but only on the first fiscal year of your conversion period. Eventually, this will be corrected on the next fiscal year up to the current date.

Check your retained earnings

In some cases, especially when the file is relatively new or you have never run a close of fiscal year before, Dataswitcher cannot reconstruct the account used for creating the opening balance of certain accounts (example, Retained Earnings). For this reason, Dataswitcher will create an opening balance transaction and will send the net result to the Retained Earnings account in Quickbooks Online. You need to check your retained earnings post-migration to see if the amounts from Quickbooks Desktop and Quickbooks Online are matching. In some cases, Dataswitcher might use the opening balance equity account. You might need to transfer the balance from that equity account to your Retained Earnings to get the amounts to agree.

Items and stock

Dataswitcher does not post a lot of fields for items and stock. Only code, stock code, location, name, and description are posted. Current stock and purchase and sales price are also posted. The corresponding income and asset accounts are not posted to Quickbooks.

Positions for COA numbers

Quickbooks does not support chart of account numbers that exceed the length of 7. If you have accounts in your chart of accounts which are 7 or longer, the migration will fail. If you are using a lot of linked accounts, the migration may also fail.

Renaming of system or default accounts

We can support renaming of normal balance sheet accounts, but renaming system accounts (Retained Earnings, Accounts Receivable, Accounts Payable, etc.) is not possible. It should be noted that If a renamed account contains historical transactions, this may cause issues that could result to suspense accounts showing up as zCustomers or Zvendors, after the conversion.

Bank payments and bank receipts

Bank payments and receipts will be migrated as journal entries in Quickbooks Online. All financial data will be migrated, but you might miss historical data like payment references after the conversion.

Information, if available in QB Desktop, that cannot be converted

Departments

Projects

Inventory List (product & services)

Bank Reconciliations

Budgets

Memorized transactions

Estimates

Purchase Orders

Sales Orders

Custom templates

Recurring journals for future fiscal year (to be added manually after conversion)

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