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Billdagoalie
April 15, 2025
Question

Properly recording transactions

  • April 15, 2025
  • 1 reply
  • 0 views

Part of our business is to purchase used lawn care machines, refurbish them (COGS Labor & Parts), then resell them.

How should I record the transactions?

Purchase item – bank withdrawal, Create an expense entry. Match together?

Question: Does the expense entry category need to be recorded as COGS? Is the initial purchase of the item considered COGS? I see both yes and no answers on the internet.

Add the item to non-inventory. Do the work.

Invoice/sales Receipt which includes the Item from inventory, Labor (COGS), Parts (COGS).

Question: Where do I put the sales price? Does that go into the sales section of the non-inventory item. Should I put the price I paid for the item in the purchased section of the non-inventory item?

I'm afraid I'm recordinig the transactions incorrectly and the books are not correct.

Thanks,

Bill

1 reply

MorganB
MorganB
April 15, 2025

Thanks for joining us here in the Community, Billdagoalie.

 

I'm happy to point you in the right direction to make sure your transactions have been entered correctly in QuickBooks Online.

 

In this instance, I recommend reaching out to your accountant for the best advice on entering your transactions. An accountant will be able to advise you of the correct action moving forward based on your unique business setup and workflows. If you don't currently have an accountant you may be interested in a new feature from Intuit called QuickBooks Live Expert Assisted. With this program you'll be able to connect with a live accounting agent for assistance with more complex questions. You can find out more about this feature here: Expert Assisted

 

If you have any other questions please don't hesitate to reach back out. I'll be here to help in any way that I can.

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