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June 18, 2019
Question

Adding New Items to Item List for Inventory

  • June 18, 2019
  • 3 replies
  • 0 views

When you add a new item to the Item List for inventory for resale, do you enter the Cost you paid with or without the tax?

3 replies

AddieC
June 18, 2019

Hi Billing MCI, 

 

Thanks for reaching out to us here in the Community with your question. Entering inventory items is a simple task when you're using QuickBooks Desktop. I'd be happy to go over the tax options when entering your inventory item.

 

There's two options you can choose from in order to account for the tax on your inventory purchase. You can either enter the cost before taxes (without the tax) and select the tax code, or you can turn on the setting that allows you to enter this amounts inclusive of tax (with the tax). Based on your screenshot, it looks as though you don't have this setting turned on, meaning that if you left your account as it is, you'll want to enter the cost you paid without the tax. You'll then select the purchase tax code in the drop-down menu below. 

 

If you'd like to enter the amount inclusive of tax, follow these steps: Edit > Preferences > Sales Tax > toggle top option over to Company Preferences > In Display Taxes section, check "Allow tax inclusive (gross) prices and costs to be entered". Now that the setting is turned on, you can enter the amount with the taxes when adding your inventory item.

 

I hope this helps. Let me know if you have any other questions. 

 

Cheers. 

June 18, 2019

Thank you so much!  It appears I am entering it correctly with how I have it set up. I didn't know about the other option.  :) 

AddieC
June 18, 2019

You're welcome. I'm glad you're now aware of all your options. It's great that you're entering it correctly and are back on track. If anything else comes up, please let me know. 

June 18, 2019

In the Box called Cost, you enter the Pre-Tax Amount.

February 28, 2020

the cost that I pay with import tax