I have a product purchased by an employee and would like to add it to my inventory using Quickbooks Point of Sale. When I do this the inventory would appear in Quickbooks Desktop as a bill and require payment which would duplicate the payment. The options I've considered are as follows:
1) Receive the inventory in Quickbooks Point of Sale and then when I need to pay the bill do so using an Unreimbursed Expenses account but that does not record the correct COGS for accounting purposes.
2) Perform a quantity adjustment in Quickbooks Point of Sale and then again reimburse the employee through the Unreimbursed Expenses account. Again there is the COGS issue.
Both options do not accurately reflect COGS. Any suggestions?
It sounds like you have already repaid the employee, if so
enter the bill for the inventory item, then edit the check you used to repay the employee and change the account used to accounts payable/vendor name
then use pay bills and apply the credit to the bill
Thank you. I have not paid the employee as yet. Under current liabilities I have an Unreimbursed Expenses account that I use to accumulate expenses that I incur and eventual repay (I'm the employee). So if I just issued the payment of the bill to come from the Unreimbursed Expenses account would that also work?
The purchase of inventory is not an expense, it is an asset. Inventory purchased for resale should post to your inventory asset account, not to COGS. Posting to COGS happens when the inventory sells to your customer. I would keep it simple - use a quantity adjustment memo in QBPOS and then cut a check to yourself and assign the check to inventory.
Thank you Rainflurry. I'm a bit unclear as to what you mean by assigning the check to inventory. Does that imply writing the check using the item option (the item doesn't show up in my Quickbooks inventory since all items are in QBPOS) or the expense option using the Merchandise Inventory account?
Are you using the Financial Exchange function in QBPOS? I'm not super familiar with that, but if the exchange sends the bill to QBD and makes the inventory adjustment during that process, I would go with option #1 in your original post and just change the payee on the bill to yourself.
I resolved this issue by :
Issue is now resolved.