RustlerAnswer
Level 15
Dec 11, 2018 1:56 AM UTC
I would use an expense account I create called materials expense if it were me. Report it under other expenses. And the **reimbursement** is not reimbursement (only employees are reimbursed by the company for something the employee paid for), it is income to the company. On the P&L income is reduced by expense, so if those two values are the same the net would be zero effect.
COGS on the income tax form has a section where you enter the inventory starting and ending values and inventory purchases, the math on the form to get COGS for taxes. So I like to keep my QB COGS account only used for inventory sales.