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Can we purchase Shipping Boxes as Non-Inventory Parts???

Forum|Forum|3 years ago
September 13, 2022
2 replies
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Hello, I am the Purchasing Officer for our company and much of our shipping boxes are ordered through Uline but no history exist in our QuickBooks for which boxes are ordered. I like creating POs for everything I possibly can as it helps track purchase history whether they are Inventory or Non-Inventory Parts that I am purchasing. It also helps everyone else who needs to know everything I am purchasing as Purchaser as they can run Purchase Order Reports.

But, our accountant likes to expense the total combined cost of all ordered shipping boxes under a single line item code "47100 - Shipping Supplies" of the Expenses Tab of the Bill to be entered which does not require me to create a PO. I understand this is okay as it balances the easiest but as purchaser, I would like reports of what boxes we are specifically buying more than another and for how much each transaction per item is costing.

With this said, I would like to know if I may at least enter shipping boxes into Quickbooks as "Non-Inventory Parts" so long as the same "47100 - Shipping Supplies" code is chosen for the account inside the part itself to be expensed from?

I've tried this already with push back but noticed it gave exactly the result I was looking for... "Non-Inventory Parts" can be right-clicked to produce a report that tells me how often and for how much I purchased each box while not having to require anyone to account for usage or what's On Hand.

If there's is a major flaw in the way I see this, please let me know, thank you!

P.S. The picture attached is an example of how we do it now on the left and how I wish it was done on the right.

QuickBooks Desktop

Best answer by Rainflurry

@TimL13

You're right on and you're not missing anything. As long as you assign the 47100 - Shipping Supplies expense account to the item, it will book the shipping boxes as an expense. The account you assign to the item is the debit entry in double-entry accounting, which is what you want to book an expense. Maybe showing the accountant a Quick Report of the 47100 - Shipping Supplies expense account (which will show the increase in expense) after doing it your way will eliminate some pushback?

KlentB

You can definitely do that, TimL13.

The Non-Inventory Part item type is normally used for the products you sell purchase and sell but don't stock as inventory. Since you need to get a detailed list of the boxes you're buying, you can set them up as non-inventory parts. By right-clicking the item and selecting QuickReport or Open purchase Orders, QuickBooks Desktop will automatically generate a transaction report. Here's how to set them up:

Go to the Lists menu.
Choose Item List
Click the Item drop-down menu, then select New
Select Non-Inventory Part from the Type drop-down menu.
Fill out the item fields, then hit Save.

I also recommend reading this article to help manage your product and service items in the program: Add, edit, and delete items.

If you have additional questions about inventory or need help in running your reports, just tag me in your posts and comments. Have a good one.

RainflurryAnswer

@TimL13

You're right on and you're not missing anything. As long as you assign the 47100 - Shipping Supplies expense account to the item, it will book the shipping boxes as an expense. The account you assign to the item is the debit entry in double-entry accounting, which is what you want to book an expense. Maybe showing the accountant a Quick Report of the 47100 - Shipping Supplies expense account (which will show the increase in expense) after doing it your way will eliminate some pushback?

AlcaeusF

Hello Rainflurry,

I have reviewed the solution you’ve shared and it's correct and accurate. Thank you for sharing your inputs to help address the issue.

We love to see members supporting one another! Have a great day.

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