I've got quickbooks online on the plus plan - basically I'm confused because I'm not sure what the best way to set up stock expenses are.
If I've bought say, £300 worth of stock, how do I input that as a transaction and let quicbooks know that was for say 30 products for £10 each? All of my transactions go through paypal. Then when the payment comes in, will I have to manually link that income to the products that were bought?
Basically whats the best way to set up stock purchases and sales as a reseller? Is there a way to link the transactions so the purchases and stock transactions are linked?
I'm here to clear things out for you, enewton12.
While bills are for payables (received services or items to be paid later), cheques and expenses are for the services or items you paid on the spot. Before diving in, make sure to turn on the Stock Tracking feature. This will allow you to easily manage and track your stock.
Next, add everything you buy and sell in your stock and then enter the purchase transactions. After that, you can now match the PayPal payments to the transactions you've already entered into QuickBooks.
I also recommend reading these articles to help monitor the status of your stocks in the program:
Drop me a comment below if you need more help in managing your books. I'll be more than happy to assist you again.
Heya, thanks for the response. Another question -
If I bought £300 worth of stock, but part of that was for VAT or for shipping, is there a way to categorise that serperatly to the stock purchase or does the whole £300 have to be marked for stock?
Some further questions for you!
- what should the category be? Should it be specific to the item (eg vintage fleeces) or should I just put it as cost of goods sold?
- is the sales price flexible? I'll often run sales and change prices around, and also some products will be worth more than others, so is there a way to change this depending on which items sell?
Thanks for getting back to us and providing additional details of your concerns, enewton121.
Setting up your stock item, QuickBooks automatically adds two accounts to your company's Chart of Accounts. These are:
If you're referring to an income account, you can create your own category for that. If you're unsure of what category to use, I would recommend seeking expert advice from an accountant to ensure your books will be accurate.
I've got an article about managing default and special accounts in your chart of accounts for your reference.
Drop me a comment below if you need further assistance with QuickBooks accounts. I'll be sure to help.