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Frequent Explorer *

Sold an inventory asset, how to record it

I do not use QB's inventory. The item was purchased awhile back, was fixed up, and was sold on eBay. I added parts so must include that value. The expenses involved include eBay seller's fees and PayPal fees both of which eBay will take out of my PayPal account. What is left minus the parts, shipping expense and item's original value will equal the profit.

 

How do I record all of that?

3 Comments
Established Community Backer ***

Re: Sold an inventory asset, how to record it

It depends

 

IF, if when you bought the parts to fix it up, you used an expense account - then those parts are expensed and can not be counted again.  The same holds true for the item itself, if you used an expense account for the purchase then the cost is posted and can not be posted again

 

If you used an asset account for the item, and also posted the parts purchase to that asset account, then when you sell it, you do a journal entry.  debit COGS and credit the asset account for the total in the item asset account.

 

Use a service item on a sales receipt to record the sale at the full price.

Use another service item named for the fees which posts to a fee expense account, qty is negative one, and enter the amount of the fee. The sales receipt will net to the amount you received, then deposit to the QBO bank and if you use banking downloads, match the QB deposit to the bank download

Frequent Explorer *

Re: Sold an inventory asset, how to record it

Thanks so much for the answer Rustler! The item was input into the Inventory Asset account which is type "Other Asset". The parts are from my regular repair stock and are under an account of type COGS. If this were a repair invoice the parts used get entered on a line to charge the customer for it and also it relieves the value I believe. So it seems to me that I would need to do that in the second sales receipt where the fees are input as negative amounts.
Established Community Backer ***

Re: Sold an inventory asset, how to record it

fees are expenses, using the negative amount in my example causes what would normally post as a credit (income) to post as a debit (expense)

 

Cost of an item is only relieved from the inventory asset account if you use inventory type items.  And if you are using inventory type items, then using a negative in the qty block will restock the item