How do I record an item that sold (and was not recorded as inventory prior to the sale) and match it to the sales receipt? How do I record item that I dispose of?

cparalle · ‎February 12, 2019

HoneyLynn_G · ‎February 12, 2019

Thank you for choosing QuickBooks as your accounting partner. I'm the right person to help you record an item that's already been sold.

Click Sales.
Choose Products and Services.
Click New.
Choose Inventory.
Enter the item name.
On the As of Date field, make sure to enter a date older than the transaction.
Enter the quantity on hand.
Click Save ad close.

After adding the inventory item, enter the sales transaction:

Click the Plus icon.
Choose Sales Receipt.
Enter the information needed.
Click Save.

That should add the item and record the transaction, cparalle. I also recommend seeking an accountant for an expert's advice about dispose items to ensure there will be no problem with the books in the future.

Please let me know if you're referring to something else. Just add a comment below or mention my name. I'm still here to help you more. Have a wonderful day ahead.

View solution in original post

Joyce_P · ‎February 12, 2019

Hi cparalle,

Yes, you can record the disposed items as an inventory. You'll have create a sub-account of COGS called loss. Then, you'll need to lower the quantity of the items that need to be written off. Also, I would recommend discussing this with your accountant to be advised on how to deal with these items.

Let us know if you need anything else by leaving a comment below. Have a good one!

View solution in original post

HoneyLynn_G · ‎February 12, 2019

Good day, @cparalle.

Thank you for choosing QuickBooks as your accounting partner. I'm the right person to help you record an item that's already been sold.

Click Sales.
Choose Products and Services.
Click New.
Choose Inventory.
Enter the item name.
On the As of Date field, make sure to enter a date older than the transaction.
Enter the quantity on hand.
Click Save ad close.

After adding the inventory item, enter the sales transaction:

Click the Plus icon.
Choose Sales Receipt.
Enter the information needed.
Click Save.

That should add the item and record the transaction, cparalle. I also recommend seeking an accountant for an expert's advice about dispose items to ensure there will be no problem with the books in the future.

Please let me know if you're referring to something else. Just add a comment below or mention my name. I'm still here to help you more. Have a wonderful day ahead.

cparalle · ‎February 12, 2019

And how about items that I dispose of? I purchase storage lockers at auction so at times there are items that aren’t worth selling and I actually have to pay to dispose of, should I bother recording those in my inventory?

Joyce_P · ‎February 12, 2019

Hi cparalle,

Yes, you can record the disposed items as an inventory. You'll have create a sub-account of COGS called loss. Then, you'll need to lower the quantity of the items that need to be written off. Also, I would recommend discussing this with your accountant to be advised on how to deal with these items.

Let us know if you need anything else by leaving a comment below. Have a good one!

Beryl · ‎November 29, 2022

When I purchased/registered a domain name on my credit card, I expensed it under my EXPENSE category "hosting/Domain names." I have never resold one but have now received an offer to purchase a domain name I hold (I often give them away for free to clients). I have long since expensed it as a business expense above and reconciled the credit card.

Because I am now selling it, conceptually it is now inventory whereas before it was an expense.

Could I

a. Leave the original entry as an expense (long since reconciled account etc --not wanting to mess with a reconciled account).

b. Create an invoice for the item (but then this would be an invoice for an expense that is not in inventory so isn't that counterintuitive?)

c. Receive the funds as if a payment against an invoice?

When I do my year end P&L this seems like a real problem as I will have an expense, but a sold item against an expense, not against a service rendered.

My business is never an inventory sold business. I only sell consulting services. I must do this by year end to pay only income tax vs. capital gains so I need to work it out

Rainflurry · ‎November 30, 2022

@Beryl

A purchased domain name is never inventory because it is an intangible asset. Intangible assets are considered a current asset on your balance sheet and are subject to 15-year amortization (depreciation, but for intangible, not tangible assets). In other words, expensing 1/15 of the cost each year. However, since you have already fully expensed it, it depends on the original cost. If the original cost did not exceed $5,000, it qualifies under the IRS's de minimis capitalization threshold and you were correct to fully expense it when purchased. Now, you can just go ahead and record the sale and it will be 100% profit this year since the expense was recorded in a prior period. If you paid more than $5,000 for the domain, technically, you should have capitalized it.

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How do I record an item that sold (and was not recorded as inventory prior to the sale) and match it to the sales receipt? How do I record item that I dispose of?