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laurencp721
October 26, 2018
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Inventory basics question

  • October 26, 2018
  • 1 reply
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I am trying to enter all our inventory since 2012.  Still rather new and shaky to it all.

 

When entering freight cost, I was dividing up the cost into each part and being done.  The owner does not want it done like that.  He would like to be able to see a report of how much the item cost without having the freight in the cost of the item as well.  How can I add the freight in as a line item?

Best answer by Rustler

Regardless of what the owner wants, the IRS is specific, the cost of inventory it all costs to get it on hand and ready for sales.  inbound shipping, taxes, customs, etc etc

 

but if he insists, create an expense account called inbound shipping and use a non inventory item named for that on the bill, enter the amount.

1 reply

Rustler
RustlerAnswer
October 27, 2018

Regardless of what the owner wants, the IRS is specific, the cost of inventory it all costs to get it on hand and ready for sales.  inbound shipping, taxes, customs, etc etc

 

but if he insists, create an expense account called inbound shipping and use a non inventory item named for that on the bill, enter the amount.

L
laurencp721Author
October 27, 2018

Ok, so what about what when you purchase inventory and have it shipped through a third party. it wouldn't be included on the invoice.  How do you handle that?

Rustler
Rustler
October 27, 2018

Landed costs require a work around

 

You enter the inventory with bill to stock it

 

when you get third party shipping or customs or whatever, you pay that bill using a clearing expense account

then you edit the bill that stocked the items, add a portion of the landed cost to each item total, and then chnage to the account part of the transaction, select the clearing expense account and enter the amount as a negative number.  The bill amount will not change if you did the math right, save and click though any warnings about payments being applied

 

QB will revisit the the stock transaction and adjust item average cost, and if you sold some in between the bills, QB will adjust COGS as well.

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