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Jeffery2020
Level 1

Re: Let's Get This Training Started

The client has a website for customer purchasing fragrances online by credit card. How does the client track expenses with bank transactions imported automatically in Quickbooks Online (QBO) as sales of goods. The client wants to break down customer purchases as Sales and Cost of Goods Sold. Also, the client wants to use an average cost for making the fragrances in QBO.  Also, the client want to pay themselves every two weeks using a check from the business depending on a profit.

 

For example, bank transaction has customer purchase in credit card for $50 which is counted as sales of fragrances. The average cost for making fragrances in $20. How does the client the Sales of $30 and Cost of Sales Sold is $20 in QBO?

1 Comment 1
Pete_Mc
Community Champion

Re: Let's Get This Training Started

Does your client creates fragrances?  So they buys other fragrances to use as raw materials in make their own fragrances?  Or do they just buy fragrances and resell them as-is?

 

If the latter, I do not believe there is an COGS involved at all, just Expenses.  (Though check with your Accountant on the latest tax laws.)

 

I believe you would only use a COGS ACCT if you make something out of raw materials.  If you make tables, the wood is COGS.  But the tools, work space, shipping, etc. are all Expenses.  Even if your client took the fragrances and put them in new bottles with their logo, that's not COGS in my opinion, also just Expenses.  But I'm NOT a Tax Accountant.

 

 

 

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