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August_Ashley
June 27, 2023
Question

Buying Furniture for Clients

  • June 27, 2023
  • 1 reply
  • 0 views

I've read through a few different discussion and felt like my circumstance wasn't fully addressed. I'm an interior designer and for most clients I buy furniture on their behalf. I buy furniture at trade pricing and sell to my clients at full retail. I don't hold any inventory. 

 

I typically issue a purchase order for 75% of the order and request the balance when the items arrive. I don't know if I should be placing these purchases under Cost of Good Sold? I did upgrade my QBO so I now have 'billable' purchases to my clients, but then again I got confused because I ask for a deposit for buying the items. I was labeling the purchases and deposits under COGS income account and was getting a negative balance. I don't know what is the proper way for me to be labeling these 'deposits' and labeling the purchases of these items. 

 

I hope someone can provide me with the right way to identify these purchases and sales. 

1 reply

J
JamesM4
June 27, 2023

Hello August_Ashley, 

 

Welcome to the QuickBooks Community. QuickBooks is an easy-to-navigate program that helps you to manage your accounting with ease. I'll be glad to share more info so you're on the right track with your work. 

 

In order to accurately record your transactions, I highly recommend consulting an accounting specialist for expert suggestions. This ensures your books remain accurate while you continue to manage your work with peace of mind. You can also get in touch with a professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in. In the meantime, feel free to check out the following article that shows you how to: Categorize and match online bank transactions in QuickBooks Online. 

 

Let me know if this info helps. Otherwise, feel free to ask questions in the comments below.

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