I have purchased a pair of protective footwear. Where would I category them. Was thinking of overheads but not sure. Please advice. Thank you

andycottonpm · ‎May 08, 2020

paul72 · ‎May 08, 2020

@RaymondJayO wrote:

If you've purchased the pair of protective footwear to sell them, I'd suggest classifying them as an asset account. However, you'll need the assistance of your accountant to confirm its appropriate Account and Detail Types. I've attached a screenshot below on how it looks like in QBO.

If you've bought this safety gear related to your normal business operations, I recommend assigning them to an expense account. Then, please consult your accountant to verify the correct Account and Detail Types. Once done, you can enter an expense, bill, or cheque to record the transaction.

@andycottonpm from the phrasing of the question, it's definitely an expense not an asset.

You could use Overheads but I'd have a dedicated PPE/Clothing or Consumables expense account.

View solution in original post

RaymondJayO · ‎May 08, 2020

I have the two options to categorise your pair of protective footwear in QuickBooks Online (QBO), @andycottonpm.

If you've purchased the pair of protective footwear to sell them, I'd suggest classifying them as an asset account. However, you'll need the assistance of your accountant to confirm its appropriate Account and Detail Types. I've attached a screenshot below on how it looks like in QBO.

Once verified, you'll first have to turn on the stock tracking feature in the settings. This way, you can add this item to the Products and Services list. Then, create an invoice or a sales receipt to track their sales. To learn more about this process, check out this article: Set Up And Track Your Stock.

If you've bought these safety gears related to your normal business operations, I recommend assigning them to an expense account. Then, please consult your accountant to verify the correct Account and Detail Types. Once done, you can enter an expense, bill, or cheque to record the transaction.

As always, you can visit this website: Chart Of Accounts Overview. It has in-depth information about managing your assets, liabilities, income, expenses, and other types of accounts in QBO. It also provides you steps on how to edit, hide, delete accounts, and add their numbers.

Keep me posted whenever you need help. Take care always, @andycottonpm.

paul72 · ‎May 08, 2020

@RaymondJayO wrote:

If you've purchased the pair of protective footwear to sell them, I'd suggest classifying them as an asset account. However, you'll need the assistance of your accountant to confirm its appropriate Account and Detail Types. I've attached a screenshot below on how it looks like in QBO.

If you've bought this safety gear related to your normal business operations, I recommend assigning them to an expense account. Then, please consult your accountant to verify the correct Account and Detail Types. Once done, you can enter an expense, bill, or cheque to record the transaction.

@andycottonpm from the phrasing of the question, it's definitely an expense not an asset.

You could use Overheads but I'd have a dedicated PPE/Clothing or Consumables expense account.

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I have purchased a pair of protective footwear. Where would I category them. Was thinking of overheads but not sure. Please advice. Thank you