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wagmore
October 8, 2022
Question

invoicing

  • October 8, 2022
  • 1 reply
  • 0 views

I own a dog training company and charge clients for overnight stays, a set amount per night plus sales tax. A dog came in without food and so we purchased a bag of food and I'd like to be compensated for this. How do I create an invoice for the amount of the food, but keep it separate from my other invoices so I do not pay tax on this. It technically isn't categorized as income so I'm not sure how to go about doing this. 

1 reply

MaryLandT
MaryLandT
October 8, 2022

Hi there, wagmore.

 

I'm here to help you create an invoice for the bag of dog food you've purchased. You can create a second invoice for the dog food, then make it non-taxable.

 

Before creating the invoice, you need to add the bag of food as an item in QuickBooks. Here's how:

 

  1. Go to Sales, then Products and Services.
  2. Click New, then choose the type of item you need to add. 
  3. From the Income account ▼ drop-down and find the account you use to track what you sell.
  4. Select either Taxable - based on location only or Nontaxable.
  5. Complete your item’s info, then click Save and close.
  6. Once done, create the second invoice and send it to your client.

 

For the category or income account of the food, it's a good idea to ask your accountant’s professional opinion about using it. If you don’t have an accountant, we can help you find a ProAdvisor near you.

 

Once the client pays what they owe, you can record the payment in QuickBooks.

 

Let me know if you have additional questions by commenting below. I'll be right here to help you.

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