We are a wholesale company importing goods from abroad and selling within UK.
Though some of the items that we have imported were used for our own company.
My question is how I can record such an expense that the items are deducted from stock as quantities and of course also as the cost amount.
My accountant advised me to create an direct expense account and record the used items here as an expense, but I couldn't figure out how I am going to record the expense and at the same time deduct the items from stock asset.
Could you please guide through?
For QuickBooks Online Plus, you can enable inventory tracking so you can track the goods you import. You can also set the Cost of Goods Sold (COGS) account as the expense account of your inventory items.
Here's how to turn on this feature:
This way, the system will automatically deduct your shipped items from the inventory every time you record a sale transaction. It also automatically calculates the expense (COGS). You can use a different expense account if you'd like to track the shipping costs, as your accountant suggested.
On the other hand, you can also track non-inventory items by following the steps listed in this article: Track your services or non-inventory items.
Do you have anything else to add? Place your query in the comments below, and I'll be sure to get back to you.
Thank you for your post.
I am already recording my purchases and sales in the same way.
My question was how to record an item used within the company.
we have purchased 10 items, recorded to the stock asset through bill.
The items are tracked from now on.
Sold 2 items through bills, expense account recorded automatically as cogs and deducted from the stock asset.
I do not have any issues with these transactions.
Now let's assume I have used one item for our own company needs.
I have to record an expense and also deduct at the same time from the stock asset but no sales transactions occurs, could you tell how to do that?
I appreciate your prompt reply, as well as adding more details to your current situation.
For that specific situation you mentioned, I suggest that you manually adjust the inventory quantity of the product in question. The system still automatically calculates the COGS amount, as if the product removed from your inventory was sold.
In case you'd like to make changes to your previous inventory adjustments, you can follow the steps in this article: Edit an inventory quantity adjustment.
I'll be around in case you have additional questions. Place them in the comments below, and I'll be sure to get back to you.