customer invoice price vs my vendors cost

Thanks for subscribing to our program and welcome here in the QuickBooks Community, @Crisman.

I can share some insights on how QuickBooks will use your costing and how it shows in a customer invoice.

When you set up a product in QuickBooks, the system will only apply the cost to expense transactions. The rate used on sales is based on the Sales price/rate you set up. I'll be adding some screenshots to show how it works.

This is how the product must be set up. Add the cost and the sales price to make it work correctly.

Expense accounts will use the cost amount.

On the invoice, you will see that the system will use the Sales price instead of the cost.

When you view your reports, depending on the type, the rate or amount displayed is based on the transaction type use. For Sales reports, it will show the sales price. While for Expense reports, cost is used for the figures.

I'll be sharing some links to help your tasks in QBO:

• Video tutorials for QuickBooks Online
• Get started with QuickBooks

It's great to see you here today. If you have other concerns with the processes in QuickBooks Online, visit us again any time. I'm also here to help. Have a nice day!

thank.  I don't have innovatory we purchase parts from venders when needed  i need to seperate list price (customers price + tax) cost price (my cost from vendor).   

Hello there, Crisman.

I can help you keep track of your purchases and sales in QuickBooks Online.

We have different item types depending on how you'll want to track them. If you don't use inventory, you can enter non-inventory products and services so you can quickly add them to your sales forms. To start using our inventory feature, make sure that you have the Plus or Advanced plan. You can upgrade your plan in case you can't turn the feature on. Here's how to turn on inventory tracking:

1. Go to the Gear icon and select Account and settings.
2. Select the Sales menu and click the Products and services section.
3. Turn on Show Product/Service column on sales forms.
4. You can also turn on both Track quantity and price/rate and Track inventory quantity on hand.
5. Select Save and then Done.

Now, you can add products and services you buy or sell, but don’t track as part of your inventory.

Once you have used them in your sales and purchases, you can run reports to see an overview of your item's price lists such as the Product/Service List Report. It lists all your items with their Price and Cost.

Add a comment below if you have any other concerns about handling your items in QuickBooks. I'll be happy to help you. Have a great day!

When we add items from time and costs it comes into the invoice at cost not the sales price.  This makes no sense to us as it gets assigned to the customers T&C account when the item is billed from the vendor and maked as billable.  If I have to manually add the items to an invoice to get the correct sale price how do I clear time and costs to ensure my billing metrics are not broken?

Hi there, AVadmin.

Thank you for visiting the QuickBooks Community. Let me share details on how created items from Time Activity works in QuickBooks Online. Then, ensure you can add the items to an invoice to get the right sale price.

When you enter item details from the time and costs page, the billable value appears as the rate on the Invoice page. Then, the Amount field was calculated by multiplying the duration by the amount entered in the Billable box. That's the reason that the item you've created comes into the invoice at a cost. Additionally, the posting of the account depends on what information you've documented when creating the item.

On the other hand, if wish to manually add the items to an invoice to get the correct sale price, I suggest creating instead an item on the Product and services page. Then, delete the created on the Time Activity to ensure your billing metrics are not accurate.

Here's how to add item on the product and service:

1. Go to Get paid & pay or Sales and select Products and services.
2. Click New. Then, choose Inventory, Non-inventory or Service.
3. Enter a Name for the product or service.
4. From the Category dropdown, select the category that best describes your product or service.
5. If you sell the item, confirm the checkbox is selected for I sell this product/service to my customers. 
6. In the Description on sales forms field, enter a description. This is what your customers will see on their sales form.
7. Enter an amount in the Sales price/rate field. 
8. Select the Income account dropdown and the account you want to use to track the sale. 
9. Fill in the other necessary field.
10. Click Save and Close.

Then, please follow the steps below on how you can delete the created items from time and costs.

1.  Go to the Project menu in the left panel.
2. Choose the created time cost. Then, double-click it to appear the Time cost report.
3. Click the item under the Product/Service column.
4. Choose Delete at the bottom.
5. Click Yes to confirm.

Lastly, you may refer to this article to see different details on how the Sales page gives you a great at-a-glance view of all the status of your sales transactions like open and paid invoices: View sales transactions.

Please know that you can always get back to us if you have any other clarifications or questions about managing items for invoices in QBO. I'm always here to help, AVadmin. Have a great day!

It seems that no one understands the issue I'm raising.  Firstly our items are configured correctly with the "I sell" box and "I purchase" box selected.  The Sell Price and Cost Price are also entered. All of this is a required step in our process before and item can be purchased. When a PO is created and an item selected from the drop down box on the left side of the line item it is brought into the PO at the items "Cost Price" which is correct.  Once that PO is closed and the bill entered with the item checked as billable and client assigned it is automatically put into the clients Time and Cost.  Lastly when an invoice is created for a client and this client has expenses and labor in the time and costs window on the right side that can be added to this invoice.  When items are added to the invoice from this list they are added at the "Cost Price" and not at the "Sale Price".  This is where we have the issue as now items are being invoiced at cost meaning lost revenue.  My issue is that why is the process broken at the invoice level it seems logical that these items that were setup in the items list at time of purchase would post at the "Sales Price".  Am I missing something here?  If this is supposed to be how the software operates what is the purpose of the "Sales Price" on the item as well as if you do not use time and costs to invoice how are your accounting metrics accurate if all of this is left to some manual data entry in the end?

Hello there, @AVadmin. I appreciate your thoughts and explanation.

Getting your issue resolved is our main concern. But we need more details about it. Can you share some screenshots with us? In this manner, we can investigate it more thoroughly and offer you the best resolution.

Your assistance with any screenshots would be highly appreciated. I'm looking forward to your reply. Have a nice day!
 

You don't want to treat them as billable, you want to treat them as products and services. Billable is what an accounting firm might do if say we buy postage for a client - we mark it billable to them and they reimburse. What you are doing is not billable expenses but purchases inventory. You would do the PO, bring the item in from the PO, then sell the item to a customer - that is an inventory transaction.