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Level 1

Cost of Goods accounting for used car dealership

Hi--wouldn't the reconditioning expenses for the vehicle be classified as Cost of Goods Sold rather than ordinary Expenses?

Highlighted
Level 1

Cost of Goods accounting for used car dealership

What do you do if you're using QBO Pro and the class isn't available to use?

Highlighted
QuickBooks Team

Cost of Goods accounting for used car dealership

Thanks for joining this thread, @clarksautosalesky.


You should be able to use the Class feature since it's available to all desktop versions. Let’s go to the Preferences settings to turn it on.

 

Here's how:

 

  1. Select the Edit menu at the top to view the Preferences page.
    edr.png
  2. Another window will display, go to Accounting on the left panel and click the Company Preferences tab.
    edr1.png
  3. From there, mark the boxes for the following:
    Use class tracking for transactions
    • Prompt to assign classes
    edr2.png
  4. Once done, click on OK.

Next, create the classes that you assign to transactions. Here’s how:

 

  1. Go to the Lists menu and choose Class List.
    edr3.png
  2. From the Class List page, click on the drop-down for Class located at the bottom of the page to create one.
    edr4.png
  3. Type in the information in the Class Name field.
  4. If you want it to be a sub-class, mark the box for Subclass of and enter the parent information.
    edr5.png
  5. Hit the OK button.

Once done, QuickBooks adds a Class field to the windows where you enter transactions.

 

For further details on how to classify transactions using this feature as well as general tips, go to the Have a Question window. You'll have open your company file to access it.

 

  1. Choose the Help tab at the top menu bar, then select QuickBooks Desktop Help and click on it to open the Have a Question window.
  2. From there, enter Add Classes in the search field.
  3. QuickBooks will display the link, you'll have to click on it to view the following topics:
    General tips for using classes
    • Classes compared to customer, job, and vendor type
    edr6.png

However, if you're using the online version, the following article provides an overview of the Class and Location tracking. Additionally, there are instructions to create categories and edit/delete a class or location: Set up and use class and location tracking.

 

Let me know if you have follow-up questions or concerns. I’ll be right here to answer you. Have a great rest of your day.

 

Highlighted
Level 1

Cost of Goods accounting for used car dealership

I would like to have some help with this.  I have a new client that wants to do this , she is just starting and I would like to set this up right.  How do I contact you?

 Annette 

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Level 2

Cost of Goods accounting for used car dealership

Marshall:

 

Watched your video on QB online used inventory, but you stated in a note that you would not recommend the method any longer (without using classes).  Is there an alternative?

Highlighted
Level 10

Cost of Goods accounting for used car dealership

I've done this video tutorial for "QuickBooks Online Projects for Used Car Auto Dealership" if interested check it out on our QBO blog.

 

http://newqbo.com/quickbooks-online-projects-for-used-car-auto-dealership-used-car-inventory/

 

This is about 1-hour video, it will show you step-by-step instructions on how to use QBO Projects for used car auto dealership. You will need a Plus plan (or Advanced) plan. Remind you, QBO is a general accounting software program, not a custom program designed for any business type. So, this is a workaround you can do in QBO.

 

Hope it's educational and instructional for your business!

 

coa_used_car_dealership.PNG

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Level 2

Cost of Goods accounting for used car dealership

Thanks so much for the reply.  I've been doing automotive for years with a regular DMS, plus qb desktop for a smaller store.  They have switched to using "Dealer Center" which feeds all car sales and inventory  into QBO and it's a mess.  I'm assuming the setups are bad and at this point I'd rather turn the feed off and do this the old school way as it's still early in the game.  I'll watch the video, thanks again.

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Level 2

Cost of Goods accounting for used car dealership

I don't seem to have the option "sub-product / service" when setting up a vehicle under a parent account. Is this something I need to turn on? Using QBO Plus.

Highlighted
QuickBooks Team

Cost of Goods accounting for used car dealership

Hi EKH3,

 

You'll have to enter your product or service in the name field when creating a sub-account. Let me guide you how.

  1. Click Accounting in the left navigation menu.
  2. Click Chart of Accounts.
  3. Click New.
  4. In the Account window, choose the Account Type, Detail Type, and enter the product/service under the Name field. 
  5. Enter Number and Description. Then, mark the box next to Is sub-account.
  6. Select the parent account from the drop-down.
  7. Click Save and Close.

Please see attached screenshot.

 

You can refer to this article about organizing your accounts for more details.

 

I've also added our page about banking and bank feeds if you need some help articles for your future tasks.

 

Fill me in if you have other questions. I'll be around to help.

 

 

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Level 10

Cost of Goods accounting for used car dealership

Here is a YouTube video I posted with the step by step instructions for the QuickBooks Plus plan (or Advanced):

 

https://youtu.be/Pl9dHnikJ3I

 

You can also download the Chart of Accounts (COA) template if interested.

QuickBooks #QuickBooksOnline #QBO #Projects QuickBooks Online Projects for Used Car Auto Dealership | Used Car Inventory http://newqbo.com/quickbooks-online...
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Level 2

Cost of Goods accounting for used car dealership

Thoughts on closing every sale to to an asset account like "car deal receivables"  or "cash on hand" and then flipping to an A/R account by journal entry (in the customer's name of course).  I have to be able to keep track of payments like contracts and down payments received on each deal.

Highlighted
QuickBooks Team

Cost of Goods accounting for used car dealership

That may work, EKH3. 

 

You can do it with journal entry but it's advisable to do the receive payment. This way, it's easier for you to keep an accurate and up-to-date accounts receivable balance. When we receive a payment, we let QuickBooks know that a particular transaction (invoice) was paid so that it will not stay open and unpaid in your reports. I encourage you to read this article that will guide you in this process: Record payments in QuickBooks Online.

 

If you want to do it with a journal entry, I recommend reaching out to your account so that you will be guided in entering the debits and credits.

 

You can pull and customize the Sales by Customer Summary Report to track the payments you received.

 

Feel free to shoot comments below if you have any other questions or require further assistance in completing your task in with QuickBooks. I'll be right here to keep helping.

Highlighted
Level 10

Cost of Goods accounting for used car dealership

QuickBooks Online (QBO): Cost of Goods accounting for Used Car Dealership

 

Here is a YouTube video I posted with the step by step instructions for the QuickBooks Plus plan (or Advanced):

 

https://youtu.be/Pl9dHnikJ3I

 

You can also download the Chart of Accounts (COA) template from here if interested.

https://newqbo.com/quickbooks-online-projects-for-used-car-auto-dealership-used-car-inventory/

 

QuickBooks #QuickBooksOnline #QBO #Projects QuickBooks Online Projects for Used Car Auto Dealership | Used Car Inventory http://newqbo.com/quickbooks-online...

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