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Level 1

Entering expense and item problem

Hi, when I entered the invoice I entered each item in the item section, but when I go to Reports then to Jobs, Time and Mileage then to profit and loss by job then to the job for example Hyundai as in the invoice the invoice does not even show up and we need to know how much was spent by the job.

 

But when I also enter the same amount in the expense tab it doubles the taxes and subtracts the amount by half of the tax and then adds the remaining tax to the right of the expense tab.  Is there a way to have the same amount in the expense tab and items tab without having the tax double and subtracting. We need to know cost per job and would also like to see what kind of items are in the invoice. Is there a way to have both categories with the same amount without it doubling the taxes and price. (Hope its not to confusing).

 

The image shows what I mean

1 Comment
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Level 7

Entering expense and item problem

Hey Exclusive12,

 

It's awesome to see you're taking full advantage of the powerful options available in QuickBooks to elevate your accounting. The system includes advanced inventory tracking, so you can rest assured you'll always know your cost of goods sold. The intuitive jobs management makes it simple to organize your income and expenses based on various projects, unlocking additional insight into your business' profitability. Your description was not too confusing at all, and the image helped a lot. I'll be happy to help make sense of this.

 

The behaviour you've described is perfectly normal, as inventory items incur costs of goods sold once you create an invoice for them. Entering a purchase in the Items section is similar to recording a transfer between two asset accounts. Instead of spending money, think of it as converting money into inventory. Once that inventory is sold, the asset account gets credited by the cost of goods sold automatically to keep everything balanced. If you want the expense to be recorded on the bill date, make sure you're selecting a non-inventory item or entering the information in the Expenses tab.

 

The reason you're seeing your taxes doubled is because there is a tax rate selected on the positive amount, but not the negative amount. Selecting the same rate on both amounts would cause the taxes to cancel each other out. I don't recommend this approach, as the expense would appear as duplicate in your Profit and Loss by Job report once the item is sold. 

 

Let me know if this helps!