I purchase different things from different suppliers like apparel, promotional product and more to sell to my customers.
Supplier usually charges me for the total amount of the item except for shipping. Once the vendor has process the cost they will charge my account for the amount of Shipping & Receiving only which is usually the next day.
When entering my withdrawls transaction from bank statement to DESKTOP QB I see the amount charge from the items so I'll enter it under cost of goods sold account. Then I see the transaction of the shipping and receiving charge to my account.
Now my question is do I need to separate the shipping and receiving into another account or all of it goes into my cost of goods sold account?
The inbound shipping is supposed to be divided across all items shipped thus if shipping charge was 10 and you received 100 items you add 10 cents to cost of each. Problem with supposed to as I see it is each time you order at same price but different inbound shipping charge your cost per item is always changing.
When I was in retail I would post shipping directly to cost of goods sold even though not 100% accurate and my inventory value never including shipping on small items. Wholegoods (in my case tractors and implements) where a single invoice included shipping was a different story.
Easiest way to manage inbound shipping is actually to pay more for "free" shipping- lol. Amazon prime - even wayfair is all free.