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PMorales
May 7, 2025
Question

Zero dollar invoices

  • May 7, 2025
  • 1 reply
  • 0 views

When I create an invoice for a project, I have to zero out the cost of the material used because we only use QB for inventory purposes. Afterwards, maybe a few hours later or the next day, a manager will bring a Sales Order for items bought for said project, but it is just to replenish what was used. When added into our inventory they add the project number to the purchase order. Will this cause the customer to get billed double or will it show up as a loss?

1 reply

J
JamesDuanT
May 7, 2025

It's excellent that you're maintaining accurate track of your inventory, PMorales. However, please note that using an inventory item on a zero-dollar invoice will decrease the Quantity on Hand (QOH). Allow me to provide further details.

 

Creating a zero-dollar invoice will automatically be marked as Paid, yet it will be recorded as a loss due to the absence of sales generated from it. Meanwhile, I will agree with the idea of sales orders to replenish the used inventory parts. I'd recommend pulling up a Profit and Loss Detail report. It will display the differences between your sales and expenses.

 

  1. Select Reports at the top menu.
  2. Go to Company & Financial, and click Profit and Loss Detail.
  3. Click Customize Report if necessary to filter out the data you need.

 

You may also find it helpful to review this article which explains how inventory assets and the cost of goods sold function in QuickBooks Desktop:

 

As we proceed, linking the purchase order with the inventory parts to the project will ensure that the customer is not billed twice. This will only serves as for tracking purposes. However, if you have marked the items as billable and create another invoice, the customer may be charged again.

 

I recommend exploring these articles to gain a deeper understanding of the Customers and Vendors workflows. Here, we will identify the correct sequence in which transactions should be created:

 

 

Please be aware that topics concerning sales and inventory are best discussed with your accountant. They can provide the most appropriate course of action tailored to your specific business setup.

 

We are dedicated to supporting the best interests of your business, PMorales. Should you need further assistance with managing your inventory or any other transactions in QuickBooks Desktop, we are here to help.

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