cancel
Showing results for 
Search instead for 
Did you mean: 
Timetaylor
Level 1

Item List

New to QB, Two questions.

(1) Under "ITEM LIST" - EDIT ITEM, Does "Purchase Info" relate to Purchase orders I create? Does "Sales Info" relate to Invoice's I create?

(2) In setting up an "Item List" Item, Should the Items I am purchasing for resale be listed as "Cost of Goods Sold" or "Expense"?

Thank you in advance

1 Comment 1
Mark_R
QuickBooks Team

Item List

Welcome to the QuickBooks Community, @Timetaylor.

 

You've come to the right place. Let me provide some information on the item list in QuickBooks Desktop.

 

You're correct! When creating or editing an inventory item, the "Purchase Information" section relates to the purchase order you created. And the "Sales Information" section relates to the invoice.

 

On the other hand, if you purchase an item for a resale it'll be listed as Cost of Goods Sold (COGS). The item can be an expense if it includes as cost of the sellable item but can still be usable in the future.

 

For example, you're selling a painting and purchase the frame from your vendor, then buy material like paints and brushes. The frame will be listed as COGS while the paint and brushes will be an expense since you can still use those items in the future.

 

I also encourage seeking help from your accountant so they can offer you some advice about the inventory items in your QuickBooks Desktop.

 

You might want to check out this article to learn more about COGS tracking: Understand Inventory Assets and COGS Tracking.

 

In case you need tips and related articles in the future, visit our QuickBooks Community help website for reference: QBDT Self-help.  

 

If you have any other questions, feel free to comment below. We're always here to help you.

Sign in for the best experience
Ask questions, get answers, and join our large community of QuickBooks users.
Sign In / Sign Up

Need to get in touch?

Contact us