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mrgrace
July 28, 2020
Question

Cost of good sold and Inventory

  • July 28, 2020
  • 1 reply
  • 0 views

I am trying to set up Quickbooks for a bicycle shop. We purchase bikes, equipment, and clothing from large manufacturers and resell them. When I buy a bike, for example, do I expense the purchase as inventory or Cost of Goods sold or neither? Help, please!

1 reply

G
GeorgiaC
July 28, 2020

Hi mrgrace 👋

 

Thanks for joining us here on the Community. 

 

You can enter the Cost of Sales as the expense account when creating the new stock item (Sales > Products & Services > New > Stock) - the CoS account is usually set here by default. 

 

When purchasing this item, you can then create an expense transaction (+ New > Expense) and select the product on the 'Item details' line.

 

Get back to us below if you have any Q's!

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