COGS or expense

Hi, @shaggycatt.

Yes, you can use a deduction item to record the employees' purchases. Once done, you can either set the item from their profile or directly on the paychecks. I'll guide you with the process.

To add the item to your employees' record:

1. Go to Employees, then click on Employee Center.
2. Double-click on the employee’s name.
3. Select the Payroll Info tab.
4. Go to the Additions, Deductions, and Company Contributions section.
5. Input the deduction under the Item Name column.
6. Enter the deduction amount.
7. Do the same steps for other employees.

On the other hand, you can also input the deduction item in a negative amount on the Other Payroll Items section.

Here's an article you can read more about processing payroll in QuickBooks Desktop: Help on common payroll topics.

Moreover, you can visit our compliance page to stay complaisant with the state payroll tax regulations.

Please leave a comment below if you have any other questions about handling employees' paychecks and deductions. I'm more than happy to help. Cheers for more success!

Hi Angelyn, 

That is exactly what I do.  BUT....lets say the mulch company sends me an invoice for our weekly charges.  I do a  company check and I break it down into mulch, delivery fee, dump, etc.  How do I code the employees purchase?  Do I set up an expense item for employee purchases?  

Thank you for getting back, @shaggycatt.

When writing a check, you can either use an expense account for the employees' purchase. Or set up the item (mulch), then add it to your expense transaction. I'm here to share with you the detailed steps.

First, create an expense account for the purchases:

1. Go to the Lists menu, then click on Chart of Accounts.
2. Select New from the Account drop-down to add a new account.
3. Choose Expense, then hit Continue.
4. Enter the name of the account, then click on Save & Close.

To create an item:

1. Tap on Item List from the Lists menu.
2. Input the name of the item, then choose the expense account created under Income Account.
3. Hit OK.

After that, you're now ready to record the check transaction.

1. Click on Write Checks from the Banking tab.
2. Set the bank where you want to get the funds from.
3. You can either use the expense account under Expenses or the mulch item under the Items column.
4. Then, add the delivery fee and other fees on the next line.
5. Review the amount, then save the transaction.

Once done, you can proceed with recording your employees' paychecks with their corresponding deductions.

You can also run your payroll reports to keep track of your payroll transactions and balances. For your guide, you can check out this link: Understand reports in QuickBooks Desktop.

If you need additional help, please feel free to mention my name in the comment section below. I've got your back, and I'm happy to provide additional assistance. Have a good one!