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Experienced Member

How to record incomming shipping costs on items/computer parts to resell and outgoing shipping costs to customers?

Hi all! I am new to QuickBooks online and I run an eBay store. I am wondering how exactly to record shipping costs to items shipped TO me and items shipped FROM me. Are shipping costs on items shipped to me considered COGS and items shipped from me to customers considered an expense? Any insight on this will be much appreciated, thank you all in advance!

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Best answer 06-03-2019

Accepted Solutions
Experienced Member

Re: How to record incomming shipping costs on items/computer parts to resell and outgoing shippin...

Thank you for your response! And to clarify, shipping charges on items TO me is considered COGS, but shipping charges on orders send from me to customers are considered an expense? Thanks again,

 

Cliff

2 Comments
QuickBooks Team

Re: How to record incomming shipping costs on items/computer parts to resell and outgoing shippin...

Thanks for joining the Community space, @Cliff_c.

 

You can set up service items for the shipping costs and add them when creating a transaction in QuickBooks Online. 

 

Here are the steps on how to set up a service item:

  1. On the top menu, choose the Gear icon and select Products and Services.
    1.PNG
  2. In the Products and Services window, select New.
    2.PNG
  3. Choose the Service tab.
    3.PNG
  4. Enter the necessary information on the fields and click Save and Close.
    4.PNG

I recommend reaching out to your accountant for the Income Account and Sales Tax category to choose. He/She can provide more expert advice based on your business' method of accounting.

 

After setting up the service item, add them when creating sales transactions.
1.PNG

 

For future reference, I'm adding the Change Product and Service types article.

 

That should keep you going today, @Cliff_c. Keep me posted on the results or if you have additional questions. I'm always here to help you further.

Experienced Member

Re: How to record incomming shipping costs on items/computer parts to resell and outgoing shippin...

Thank you for your response! And to clarify, shipping charges on items TO me is considered COGS, but shipping charges on orders send from me to customers are considered an expense? Thanks again,

 

Cliff