Is there a way to enter an expense under a sale? Example: We sell grain to a customer. The customer deducts trucking. How do I record the trucking under the sale?

Hi Farmer12345,

Welcome to the QuickBooks Community! When it comes to managing your assets, QuickBooks is the go-to program that enables you to manage your work with peace of mind. I'll be happy to share more info so you're on the right track with your work. 

In order to accurately record your transactions, I highly recommend consulting an accounting professional for expert advice. This ensures your books remain accurate while you continue to manage your work with peace of mind. You can also get in touch with a professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in. Otherwise, feel free to check out this article that shows you how to record expenses in QuickBooks. 

Let me know if this info helps. Otherwise, you're more than welcome to ask other questions in the comments below.

First, are you using QBO or QuickBooks Desktop?

In QBO, I create an item for freight, or trucking or shipping, and link it to the freight expense account.  Enter the amount of trucking or freight as a minus amount.  Actually, I use the same method in desktop.  I do bookkeeping for a number of farmers so can help you get it set up properly.  The same situation applies to sales of cattle through the sales barn where some taxable deductions are applied to the sale price.  This allows you to track the sales tax amount of the expense as well.

Thank you for your response.  I'm using Quickbooks Online.

I guess I'm unsure how to create an item to link it to the freight expense account. 

I can help you with that.  Very quickly and at no cost to you as it is very simple for me since I do it frequently.  If you want, send me an email at [email address removed] and we can exchange information of forum.  I guess that does not work but you can go to the resources tab at the top of this page and go to "Find an expert".  You should be able to find me by my user name for this forum.

Thank you.  If you would post the answer online through this forum, instead of exchanging personal email addresses.  Thanks.

Okay - let's see if this makes sense to you.  Go to the gear icon at the top right hand of the screen, click on lists, then products and services.  Select "New" then service.  Now fill in the name - "Trucking", skip SKU and category, then enter a description "Trucking expense".  Leave sales price empty, then conect to the appropriate expense account - probably called "Trucking Expense" or something similar.  Next choose whether the amount entered includes sales tax or if sales tax is in addition to the amount.  Last select the relevant sales tax item.

When you enter the invoice, select "trucking" in the product/service dropdown and enter the amount as a minus quantity or dollar amount.  This should work.

Thank you, that seems to be working for me.

However the next issue is the tax.  Are you in Canada?  

On the HST detail report - this negative amount is showing up as a negative under Line 103 (HST collected).

It should show up under Line 106 as HST paid (Input Tax Credits).

Is there any way to have this entry appear under Line 106 on this report?