Skip to main content
P
pmwehrle
July 10, 2023
Question

COGS versus billable expenses versus AR

  • July 10, 2023
  • 1 reply
  • 0 views
Delivery driver purchases prescriptions from the pharmacy (at pharmacy's request). The person receiving the prescription pays the delivery driver for the prescription (no mark-up) upon delivery. At the end of the month the pharmacy is billed for the delivery charges.
 
I'm not sure what the best way to do these expenses and deposits as.

I tried using billable expenses but the prescriptions are paid for right away, and billable expenses doesn't work with sales receipts. It is also very time consuming to do it that way. Someone suggested using COGS. Another suggestion was to do these as accounts receivable.

1 reply

A
Alex M
July 10, 2023

Hi there pmwehrle,

 

It's important that all your transactions are entered correctly for your accounts to be well balanced. QuickBooks Online is a great tool able to help you keep track of sales and expenses so you know the profit of your company. I can point you in the right direction for assistance with how you should be keeping track of these transactions.

For help with how you should be entering these transactions so they will affect the books correctly, I recommend reaching out to your accountant. Their expertise will be able to guide you in which transaction type to use, and which accounts to choose so your books can be correctly affected. You can invite your accountant to QuickBooks Online so they can see your books by going to the My Accountant tab. You can also find an accountant near you that has experience using QuickBooks by clicking the Find a pro to help button located in that section.

If you have any other questions, feel free to reach out here.

Terms & ConditionsAccessibility statement