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how to set up accounts for company that does intermediation

Hello there,

My source of revenue comes from being an intermediary between companies.

 

I basically identify a customer needs some goods (lumber in my case). I will then find an appropriate vendor , and purchase the goods. Note that I never take inventory, but arrange for the direct shipment of goods to the customer. The customer will then pay me for the goods once they receive them.

 

Can you suggest which accounts I need to set up, and how to enter the transactions on Quickbooks? Thank you for your help.

Best answer 04-19-2019 12:48 PM

Accepted Solutions
Moderator

Re: how to set up accounts for company that does intermediation

Thanks for getting back, @enrico.

 

I can help provide additional information about the difference between the two items.

 

A service item will include charges for professional fees that your firm buys or sells. If you're creating a service item used in purchases, you record your vendor's unit price as rate and choose an expense for the account. If it's a service item you sell, you record your typical selling price as the rate and choose an income account.

 

The non-inventory item is a material bought and/or sold, but not tracked as inventory part. QuickBooks won't track the quantity on hand nor the value of these items. 

 

Also, a service item is available for timesheet use which is not available in non-inventory. 

 

Keep me posted if you have other questions about using the service item. I'm here to help however I can. Have a great weekend.

4 Comments
Moderator

Re: how to set up accounts for company that does intermediation

Hello, @enrico.

 

Let me help share some insights about setting up accounts for a company that does intermediation. 

 

You can set up a service item to describe the types of service your company provides. Then, choose income for the account. 

 

You can then create an invoice or sales receipt to record your transactions. You can refer to this related article for the usual A/R workflows in QuickBooks: Accounts Receivable workflows in QuickBooks.

 

This should help get you on the right track. Keep me posted if you have additional questions about setting up the service item. I'm here to help.

Community Explorer **

Re: how to set up accounts for company that does intermediation

@LilyC , since I am effectively intermediating for a tangible item, I was under the impression that I could not use a service item, but a non-inventory item. What is the difference between them?, or better, how does Quickbooks treat the 2 items differently when registering transactions related to them? 

Community Explorer **

Re: how to set up accounts for company that does intermediation

@LilyC , since I am effectively intermediating for a tangible item, I was under the impression that I could not use a service item, but a non-inventory item. What is the difference between them?, or better, how does Quickbooks treat the 2 items differently when registering transactions related to them? 

Moderator

Re: how to set up accounts for company that does intermediation

Thanks for getting back, @enrico.

 

I can help provide additional information about the difference between the two items.

 

A service item will include charges for professional fees that your firm buys or sells. If you're creating a service item used in purchases, you record your vendor's unit price as rate and choose an expense for the account. If it's a service item you sell, you record your typical selling price as the rate and choose an income account.

 

The non-inventory item is a material bought and/or sold, but not tracked as inventory part. QuickBooks won't track the quantity on hand nor the value of these items. 

 

Also, a service item is available for timesheet use which is not available in non-inventory. 

 

Keep me posted if you have other questions about using the service item. I'm here to help however I can. Have a great weekend.