Question

How to apply credit card transactions as a cost to a specific product/service we offer?

Forum|Forum|5 years ago
September 4, 2020
1 reply
4 views

We use QBO and offer two major types of product/service Routine and Non-routine services. Routine are year long contracts where we work on a client's site where we do 4 major tasks (or subcategories) and our monthly service fee covers any of those 4 routine tasks. However, we also have ad hoc services where we charge additional fees and they have 2 subcategory or routine tasks that we charge for.

Question - If we have to buy something on our CC directly related to the cost of doing one of those things (COGS/COSS) - I don't have the ability to tie the expense to a particular product/service in the banking session where I have to "review" and "categorize" transactions. My only option is to tie it to a customer/project (great - I need that), but it only offers me a "category" which ties it to a chart of account option. I want to tie it to a product/service we offer which is then further tied to a chart of account. Do I have to create separate "expenses" for all of my credit card transactions which give me the ability to do this under "item details" and the "match" the transaction? Thank you in advance.

QuickBooks Online

N

Nick_M

Level 4

Hey there, sm5000.

Thanks for dropping by the Community. You're correct in that you'll want to create expenses in QuickBooks that include the services from your products & services list. To create these expenses you can follow these steps:

Create an expense

Select + New.
Select Expense.
In the Payee field, specify a vendor. You can specify the name of a person or a business. If your transaction covers multiple petty cash expenses, leave this field empty.
Select the Payment account to which to credit this expense.
Enter the date of purchase in the Payment date field and specify the Payment method for the expense.
(Optional) You can use the Ref no. field to enter an identifying number from the purchase receipt. (Note: QuickBooks Online Plus users: When location or class tracking are turned on, additional fields for Location or Class appear. You can turn on location or class tracking features in Account and Settings on the Advanced tab).
(Optional) Enter a description of the expense.
Enter the amount of the purchase and any Tax paid (if applicable).
Select Save and close or Save and new.

Before you Save and close, you have some options to consider that could help track the expense:

If you are billing this expense to a specific customer, select the Billable checkbox and enter the name of the Customer. Billable expense tracking must be turned on to see the Billable column. You can turn it on in Account and Settings on the Expenses tab. Note: If you later receive a credit for an expense that was previously billed to a customer, be sure to specify that customer on the credit and select the Billable checkbox or the customer will be billed for the expense on the next invoice, and the credit will not appear.
To see a report of income vs. expenses for each customer, you can run an Income by Customer Summary report.
Enter any note or Memo you want to appear in the Register, on printed checks, and on reports that include this purchase.
Use the fields in the Item Details section to enter information about the product or service purchased.

If you have any other questions, feel free to post below anytime. Thank you and have a nice afternoon.

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