Category for equipment purchased for resale

Hi there. If you are turning the inventory that quickly, they don’t need to be classified as a fixed asset. Typically fixed asserts are something a little harder to convert to cash, and you usually have them long term. If you are turning the inventory that quickly, I would classify it as a cost of goods sold- especially if it is your main source of income. You’ll want them showing on your P&Ls and not your BS. Hope this helps!

@Lila7557 

Equipment purchased for resale is inventory (asset), never a fixed asset.  It should be recorded as COGS at the time you sell it, hence the name cost of good sold.  If you record it as COGS, you will be expensing the cost of the generator when you buy it, not when you sell it.  Given the short turnaround, the difference may not be significant (whether recorded as inventory or COGS) but, if you record the purchases as COGS, you will be overstating your expenses and understating your net income by the amount of generators in inventory at any given time.  You can set up inventory items for each generator and QBO will accurately book the cost to inventory when purchased and to COGS when sold.