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Jeneffer_Medina
November 12, 2019
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Setting Up Chart of Accounts for a Contracting Company

  • November 12, 2019
  • 1 reply
  • 0 views

Dear All,

 

I would like to ask with regards to setting up Chart of Accounts for a Contracting Company.

We already have an existing accounting software but decided to have the QuickBooks Desktop PRO version for 2019. We are trying our best to make the Chart of Accounts as accurate as we can but find it hard for some. We are doing different project at the same time so our issue for now is to set the cost center for each project to check the profitability of each project.

1. We tried to input Bill with one Supplier but want also this to be recognized in the Expense/COS account to be link with the Project Account. When we tried to post one, it is not posted in the Expenses nor in the COS but only in Accounts Payable Account and in the Supplier Account which is right.

I hope this first issue can be solve as soon as possible to discuss further with QuickBooks System.

 

Best answer by KhimG

Thanks for getting back to us, @Jeneffer_Medina.

 

The affecting accounts of a bill when purchasing an item (Materials) are Stock Asset, A/P, bank, or card. It’s not an expense because of the following:

  • It’s an asset that you can sell in the future.
  • You record the expense to match the income. 

The Cost of Goods Sold, on the other hand, is only affected when you use invoices or sales receipts. I recommend checking out this article for more information: Understand Stock Assets and COGS tracking.

 

Always make sure to select the appropriate job in the Customer: Job column when entering the bill. Mark it as billable to track the project. Here’s an article to serve as your guide: Tracking job costs in QuickBooks Desktop.

 

Leave a comment if you need additional assistance. I'm always here to help. Have a good one!
 

1 reply

P
payment after leaving
November 12, 2019

Hi Jeneffer

 

You can use sub-customers to track the different projects, this would allow you to tract=k where the individual amounts are. You can also enter job information so you can enter more detail.

 

We would be grateful if can clarify point 1 as it is not quite clear what you are attempting to achieve, please provide us with a scenario.

J
Jeneffer_MedinaAuthor
November 13, 2019

Thank you for your reply.

 

We would like to have the clear classification of expenses and cos of sales to be directly associated with  project. E.g. Materials purchased by ABC Company for Project 1.

 

This purchases should be seen with COGS - Supplier Account - and Project 1.

 

We tried to input bill for Materials with specific supplier in the system but only Accounts Payable and Supplier Account it was posted. It is not posted in COGS and Project Account.

K
KhimGAnswer
November 13, 2019

Thanks for getting back to us, @Jeneffer_Medina.

 

The affecting accounts of a bill when purchasing an item (Materials) are Stock Asset, A/P, bank, or card. It’s not an expense because of the following:

  • It’s an asset that you can sell in the future.
  • You record the expense to match the income. 

The Cost of Goods Sold, on the other hand, is only affected when you use invoices or sales receipts. I recommend checking out this article for more information: Understand Stock Assets and COGS tracking.

 

Always make sure to select the appropriate job in the Customer: Job column when entering the bill. Mark it as billable to track the project. Here’s an article to serve as your guide: Tracking job costs in QuickBooks Desktop.

 

Leave a comment if you need additional assistance. I'm always here to help. Have a good one!
 

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