Skip to main content
P
Priscilla Mwendwa
May 20, 2022
Question

non inventory

  • May 20, 2022
  • 1 reply
  • 0 views

I run an health care business, there are items (non inventory) that are used to give services to patients but they dont need to be tracked. When i use the non inventory the cost of sales is not reflected. Which option should i use?

Calculating how much it costs to give the service to the patient and using this as the cost of sales or service.... and if i use this option i will i record purchase of the materials because recording them as purchases will increase my inventory value and recording it as an expense will be like double charge since material cost has been factored in calculating cost of service. 

    1 reply

    Rose-A
    Rose-A
    May 20, 2022

    It's good to see you here in the Community, Priscilla Mwendwa. I'm here to help share some information regarding non-inventory products in QuickBooks.

     

    The normal accounting for goods you stock and sell is to use Inventory type items - these create the Cost of Good Sold (COGS) when sold. COGS is only affected when you sell inventory items on invoices or sales receipts.

     

    Non-Inventory items in QuickBooks are products of which the inventory is not tracked. This means that when a product is sold, the sales amount does not change or reflect.

     

    Since I can't recommend which option that's best for your business, I'd suggest getting in touch with your accountant. This is to ensure you're recording the cost accurately.

     

    If you're using QuickBooks Desktop or the online version, you can visit the resources below. On the same link, you'll find what report to pull up to see your best sellers as well as details on how to manage to your items:

     

    Set up and track your inventory in QuickBooks Online.

    Understand inventory assets and cost of goods sold tracking.

     

    I'm only a post away if I can be of additional assistance. I'm always here to keep helping. Wishing you a wonderful rest of the week.

    Terms & ConditionsAccessibility statement