We are a retail business where we do not monitor stock. We enter bills from suppliers and in the split enter an account of 'Stock: [brand name/item category] with each brand or category having its own account. At the end of each day we add up the receipts for the income for that day. We then enter a single Sales Receipt (Under Customers) in QB to record the receipts for that day..
My questions are:
- When putting through purchase bills for stock, should the accounts for the stock purchased be Other Current Asset accounts or Cost of Goods Sold (COGS).
- On the Item for the Sales Receipt, say I create a general item called 'Sales'. For this Sales item:
a. What type is it: Non-stock Part, Other Charge or something else?
b. Should the account for the Sales item be an Income account?
Thanks.
