I am wanting to create a bill from a vendor for products purchased for resale. In the bill there are two product items as well as freight to me. My dilemma is, how do I apply the freight to the bill? Can it simply be the third line item recorded to Products purchased for resale A.K.A. Cost of Goods Sold? This way the Payment will match.
Or is their a better way to do this?
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Standard accounting is that all costs to get an item for resale on hand and ready for sale are part of the item costs. O inbound shipping, customs, taxes etc are all part of item cost. Inbound shipping is not booked separately, but is a cost when the item sells, not purchased.
on the bill, increase the total for each item by a portion of the inbound shipping, when you click or tab out of the total block QB will do the per item rate for you.
Makes perfect sense, thank you. However, when I do so The total costs in QBO does not match the costs on the invoice received and therefore will not match to the payment recorded when paid. The invoice is $198.89. When I click out QBO offers a total of $199.00 for the bill. Have I done something incorrectly?
Initial math was wrong.
QBO is now off by one cent as it relates the invoice and my spreadsheet. Is it customary within this billing method to simply adjust the portions to make the total reflect the invoice that needs to be paid?