car dealer cost of good sold

Thanks for reaching out to us, Michel09.

I'll give you some tips on managing in setting up the Cost of Goods Sold (COGS) for your car dealership business.

The COGS account was one of the default accounts when you set up your QuickBooks Online account. You'll have the option to create a COGS account if you'd like. I'll show you how.

1. Go to the Gear icon.
2. Select Chart of accounts.
3. Click New.
4. In the Account Type dropdown, choose the Cost of Goods Sold.
5. In the Detail Type dropdown, select the best type that describes the COGS account.
6. Enter your desire name in the Name field.
7. Fill in the Description section if necessary.
8. Once done, hit Save and Close.

If you're using the new screen for creating accounts, take the following steps:

1. Go to the Gear icon.
2. Select Chart of accounts.
3. Click New.
4. In the Save account under dropdown, choose the Cost of Goods Sold.
5. In the Tax form section dropdown, select the best option from the list.
6. Enter your desire name in the Account name field.
7. Fill in the Description.
8. Once done, hit Save.

After that, you can create an inventory item for the vehicles.

Here's how:

1. Go to the Gear icon.
2. Select Products and services.
3. Click New, then Inventory.
4. Enter your desire name and fill in the rest of the necessary information.
5. Choose the correct income account from the Income account dropdown.
6. Select the COGS account you've create in the Expense account dropdown.
7. Once done, hit Save and close.
8. Repeat the same process for the rest of your inventories.

The COGS account is only effected once you've sale your inventory through invoice or sales receipt. I also advise consulting with your accountant for further guidance. This guarantees the accuracy of your books.

For your reference, check out the following articles below for more insights:

• Add an account to your chart of accounts in QuickBooks Online
• Set up and track your inventory in QuickBooks Online

I'm also adding this resource to guide you through the process of recording invoice payments: Record invoice payments in QuickBooks Online.

Don't hesitate to post again if you have further questions or concerns. I'll be around to assist you.