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ZMBooks
Level 1

Supplier Default

Hi

I am new to QuickBooks online. I am trying to set up a new Supplier default account Cost of Goods Sold but i only get Expenses in the dropdown menu. How to i sort this please as most of purchases of costs of goods sold. It's for a grocery shop.

Thanks

Solved
Best answer March 02, 2021

Best Answers
AlexV
QuickBooks Team

Supplier Default

Hi ZMBooks.

 

Let me share more details about the supplier account.

 

We can only select Expenses and Other Expense account types as the supplier default account. I'd like to reiterate what JessT mentioned. QuickBooks Online will automatically calculate your cost of goods sold once you set up and track your inventory in QuickBooks Online.

 

For now, you'll want to manually select your desired account/category when creating a bill or expense transaction.

 

Need more help? Just keep your posts coming. Thanks!

View solution in original post

5 Comments
JessT
QuickBooks Team

Supplier Default

Welcome and thank you for choosing QuickBooks Online (QBO), ZMBooks!

 

I will guide you to create a Cost of Goods Sold account.

 

If you have inventory items, you can enable to Inventory tracking feature, and this will automatically create a Cost of Goods Sold account. This feature is only available in the QBO Plus and Advanced plans.

  1. Click the Gear icon and choose Products and Services.
  2. Click New and enable the option for Inventory.

To add another cost of goods sold account:

  1. Click the Gear icon and choose Chart of Accounts.
  2. Click New and choose Cost of Goods Sold under Account Type.
  3. Select a Detail Type and name the account.
  4. Click Save and Close.

You can assign the new COGS account to your product items.

 

 

On the other hand, you can check the video tutorials for your reference in the future.

 

If you have other questions in mind, you can always go back to this thread.

ZMBooks
Level 1

Supplier Default

HI Many thanks for your reply re Cost of Sales. So I presume I cannot add Cost of Sales as a default expense account when i add a new supplier?

So when i'm entering a bill it would be great if the Category would automaticallty come up as Cost of Sales. Is this possible please? Thank you.

AlexV
QuickBooks Team

Supplier Default

Hi ZMBooks.

 

Let me share more details about the supplier account.

 

We can only select Expenses and Other Expense account types as the supplier default account. I'd like to reiterate what JessT mentioned. QuickBooks Online will automatically calculate your cost of goods sold once you set up and track your inventory in QuickBooks Online.

 

For now, you'll want to manually select your desired account/category when creating a bill or expense transaction.

 

Need more help? Just keep your posts coming. Thanks!

View solution in original post

ZMBooks
Level 1

Supplier Default

Ok that's good to know. Many thanks.

MorganB
Content Leader

Supplier Default

I'm glad to see you were able to receive the assistance you needed here in the Community, ZMBooks. Please don't hesitate to reach back out if you need a hand with anything else. Myself and the rest of the Community have your back.

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