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JillK1
August 12, 2023
Question

Quickbooks Desktop Non-Inventory items and vendor bill entry accounts

  • August 12, 2023
  • 1 reply
  • 0 views

My client does HVAC repair.  She uses QB Desktop Enterprise.  Many of the parts she uses are purchased for individual customer work orders.  The items are entered on the customer's invoice using non-inventory items, services, and sometimes inventoried items. The non-inventoried items have an income account of "Sales" on the item card. 

 

She currently enters the vendor bill by listing the non-inventory items in the ITEM tab. Should she be entering the cost of the non-inventory items in the EXPENSES tab instead (without any item details) with the account of Purchases (COGS)? I think it is throwing the reporting and not going into COGS account at all when entered under the ITEM tab. 

1 reply

M
Maybelle_S
August 12, 2023

Thanks for reaching out to the Community, JillK1.

 

I would love to help you, but I need some information about your concern. Could you please provide more details regarding the non-inventory items and vendor bill entry accounts?

 

Any additional info or a screenshot of the interface will be greatly appreciated. We are looking forward to your reply. Have a good one!

J
JillK1Author
August 14, 2023

Since it is QB Enterprise 2008 desktop version, I don't have access unless I am at the client's.  If my description above is not clear, I will try to ask differently.  When entering vendor bills, do you enter non-inventory items in the ITEMS tab or the EXPENSE tab of the Enter Bill window? If the item is entered under the EXPENSE tab, my client would use a COGS account and the name of the item in the description.  If entered under the ITEM tab, I believe the account is Inventory Asset (not positive of this). What is the correct way to enter vendor bills when purchasing non-inventory items?

DivinaMercy_N
DivinaMercy_N
August 15, 2023

Hello there, @JillK1. I'll share some information on how you can enter the non-inventory items when creating bills.

 

In QuickBooks Desktop (QBDT), the Items tab in the Enter Bills window is for recording anything that you buy, sell, or resell in the course of business like products. While, the Expenses tab is for recording the expenses incurred by the business such as phone service, rent, and utilities. 

 

That said, you have to enter the items (such as non-inventory items) you created in the Items tab and accounts for services your business incurred in the Expenses tab. 

 

For reference, check out this article: Enter bills in QuickBooks Desktop. 

 

Additionally, since non-inventory items are not tracked as inventory, you can use other accounts such as COGS when setting up this item type. You can reach out to your accountant for guidance on what account you should use to make sure everything is set up correctly. If you need to edit it, refer to these steps:

 

  1. Select the Lists menu and choose Item List.
  2. From there, look for the non-inventory item and double-click it to open.
  3. Then, in the Account field, select the account appropriate for that item.
  4. When done, select OK.

 

Then, to keep you in the loop when managing vendor bills, please read this link: Accounts Payable workflows in QuickBooks Desktop.

 

Once everything is fine, your next step is to pay your vendor bills. 

 

If you have any other concerns managing your vendor bills, please don't hesitate to leave a reply below. Have a good one and stay safe. 

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