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firstinfiretruck
Level 1

Are tools I purchase for use in my shop considered inventory?

I have an auto restoration shop, and purchase tools for use from a local vendor. I want to keep track of these tools for loss and depreciation purposes. How do I enter them when entering a bill from the vendor?

Solved
Best answer October 15, 2018

Best Answers
Rustler
Level 15

Are tools I purchase for use in my shop considered inventory?

If your tools are going to be depreciated, then you list them as fixed assets in the chart of accounts, this is normal for high dollar shop equipment.  But a $100 skill saw I would book as an expense.

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8 Comments
Rustler
Level 15

Are tools I purchase for use in my shop considered inventory?

If your tools are going to be depreciated, then you list them as fixed assets in the chart of accounts, this is normal for high dollar shop equipment.  But a $100 skill saw I would book as an expense.

View solution in original post

LauriGrace
Level 1

Are tools I purchase for use in my shop considered inventory?

Hi. What Expense detail type account would you list a say $250.00 tool as? Thankyou

LauriGrace
Level 1

Are tools I purchase for use in my shop considered inventory?

Hi. What Expense detail type account would you list a say $250.00 tool under? Thankyou

Rustler
Level 15

Are tools I purchase for use in my shop considered inventory?


@LauriGrace wrote:

Hi. What Expense detail type account would you list a say $250.00 tool under? Thankyou


tools or shop expense

Lizandpaulj1
Level 1

Are tools I purchase for use in my shop considered inventory?

What about materials for building works ie plaster or paint or bricks please! Thanks

Rustler
Level 15

Are tools I purchase for use in my shop considered inventory?


@Lizandpaulj1 wrote:

What about materials for building works ie plaster or paint or bricks please! Thanks


job or shop materials expense

Lizandpaulj1
Level 1

Are tools I purchase for use in my shop considered inventory?

Thank you for your reply

 

Is this a category I have to "add" as ive just started out and it doesnt appear to be in the list

 

Thanks 

Liz

 

 

MikiD
QuickBooks Team

Are tools I purchase for use in my shop considered inventory?

You might want to choose the Detail Type closest to your transaction, Liz.


Each selected Detail Type has a description on the box below the field. You can refer to this information to choose the best one.

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Currently, there isn’t a way to add another category aside from the ones showing on the list. If you’re not comfortable with your own discretion, I’d recommend asking an accountant’s suggestion.


Drop us a question again if you need anything else. 

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