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Sweetlifellc
April 8, 2024
Question

Adding materials, COGS without showing on invoice

  • April 8, 2024
  • 1 reply
  • 0 views

I sell produce.. how can I keep track of growers I purchased product from, costs of cardboard boxes and pallets without them being on the invoice? I want to be able to show a true profit by report. Ex: if I sell a case to a food store for $20. How can I track the freight costs, which grower and how much I pay for the produce, cost of cardboard boxes and pallets that I supply the growers? Thank you

1 reply

H
Heide DC
April 8, 2024

Hi there, Sweet.

 

If you bought this as an inventory item, QuickBooks will automatically track its cost. Ideally, the Cost of Goods Sold (COGS) is created and is only affected when you sell inventory items on invoices or sales receipts.

 

Since you don't want to track the cost of the item with an invoice, you can also sell what you have in stock. When the quantity is zero, make the inventory item inactive. Then create a new non-inventory or service item to replace it so it will not track the item cost when creating an invoice. With these adjustments, I also recommend consulting your accountant for proper accounting guidance.

 

On the other hand, your accountant can also help with tracking the freight cost, if you want to create it as an item and associate it with the following income or expense accounts or add it as an account category. In this manner, you can properly track how much you'll pay for the produce, and the cost of cardboard boxes and pallets that you supply the growers.

 

Moreover, you can check this article to learn more about how QuickBooks handles inventory assets, average cost, and Cost of Goods Sold (COGS): Understand inventory assets and cost of goods sold tracking.

 

Keep your posts coming if you've got additional questions about managing COGS. I'll be right here to assist you further. Take care.

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