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Elimy1224
January 25, 2023
Question

Invoices and COGS

  • January 25, 2023
  • 1 reply
  • 0 views

Good evening! 

I am attempting to properly input appropriately into an invoice a single item, with ensuring that it is properly accounted for as COGS and not the entire thing as revenue! 

 

We have a small business - my husband works on furnances, fuel pumps etc. We don't stock pumps or large items, so when we do purchase them, they are purchased directly for a customer. 

 

For example, 

A water heater was purchased for 1400$ roughly, making taxes (13%) 182$. 

My husband paid a total of 1582$ for the water heater, and will charge the customer an additional 200$ on the base price. 

 

 

Initially, when I enter the purchase (1582$)  I am not sure if I am supposed to be putting it under an expense account, or an inventory/asset account. 

 

Then I am not sure how to go about the invoice - For his time , truck charge, and other small materials everything is easily set up. I have non-inventory items available, but I am not sure how to list this properly without the entire item appearing to be revenue. 

I am wondering if I simply charge it as a 'Materials', then adjust the journal entry after the invoice is saved, to allocate the initial cost to COGS, then the remaining properly to revenue and taxes ? 

1 reply

T
Trish_T
January 25, 2023

Hi Elimy1224,

 

Thanks for reaching out here.  It's important that you're able to enter your transactions accurately in QuickBooks Online, to ensure your records are aligned.  I'd be glad to assist!

 

When you set up your inventory, QuickBooks automatically sets up the associated accounts for you.  To get a better handle on inventory assets and cost of goods sold click here.  If you're still uncertain about creating the invoices, to ensure your items are allocated properly, I suggest contacting us outside of Community.  With your consent, our Customer Care team can work with you in 'real time' and ensure you're able to record your transactions seamlessly.

 

Schedule a Callback or start a Chat: click (?) Help in the upper right in QuickBooks Online > enter "Contact support" > hit Contact Us > provide a brief summary of your situation > hit Let's Talk > choose Get a callback or Start a Chat.
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Support hours are from Monday to Friday between 9 a.m. and 8 p.m. ET.

 

Please feel free to reach back out if you have any other questions.  We're always happy to help!

 

 

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