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How to Match Inventory's Cost of Goods Sold to Bank Transaction

I recently started using Quickbooks Online Plus and have been using the inventory tracking feature.

I buy and sell watches so I generally only have a quantity of 1 per item. The issue I'm having is when I create an item it adds the cost of goods sold to the inventory assets account which is fine, I expect that. But when the charge comes through from the bank and I need to match it with something, I try to match it to the item I have already created which causes a duplicate increase in the inventory assets account. 

 

So an example would be I create a watch that cost 100 dollars. The transaction of me paying for that watch comes through and I need to tell QuickBooks that that $100 charge is what paid for the item I created. How do I match them together? 

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Best answer 12-19-2018

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Re: How to Match Inventory's Cost of Goods Sold to Bank Transaction


@Dinah21599 wrote:

I recently started using Quickbooks Online Plus and have been using the inventory tracking feature.

I buy and sell watches so I generally only have a quantity of 1 per item. The issue I'm having is when I create an item it adds the cost of goods sold to the inventory assets account which is fine, I expect that. But when the charge comes through from the bank and I need to match it with something, I try to match it to the item I have already created which causes a duplicate increase in the inventory assets account. 

 

So an example would be I create a watch that cost 100 dollars. The transaction of me paying for that watch comes through and I need to tell QuickBooks that that $100 charge is what paid for the item I created. How do I match them together? 


As I understand this, you are creating an item with qty and cost

and then wanting to match the purchase

 

you only create an item with qty and cost if you are starting the company and have it on hand

otherwise the qty is zero and the cost is zero when you create the inventory item

then you enter a purchase for the item, and match the banking download to the purchase transaction

2 Comments
Moderator

Re: How to Match Inventory's Cost of Goods Sold to Bank Transaction

Thanks for the detailed information, Dinah.

 

We're unable to directly match your bank transaction to the item you've created.

 

First, You'll need to associate the item to a transaction. Let me give you an example based on the details you've provided above.

  1. Click the Create menu (+) and select Expense,Bill, or Check. This is to record the watch you've purchased.
  2. Enter the vendor details and go to the Item details section.
  3. Add the item (watch) and the amount.
  4. Click Save and close.

If you created a transaction that affects the bank account automatically (such as Expense and Check), make sure you're using the correct bank account.

 

From there, you'll be able to match it to your bank transaction.

  1. Select Banking on the left menu and go to the Banking tab.
  2. Under the For Review section or tab, you can see a bank transaction that shows 1 record found.
  3. You can click View to see the transaction that matches the bank ones.
  4. Click Match.

You can also use this article about matching bank transactions for reference: How to Add and Match Downloaded Banking Transactions.

 

I'l be right here if you need more assistance with this.

Established Community Backer ***

Re: How to Match Inventory's Cost of Goods Sold to Bank Transaction


@Dinah21599 wrote:

I recently started using Quickbooks Online Plus and have been using the inventory tracking feature.

I buy and sell watches so I generally only have a quantity of 1 per item. The issue I'm having is when I create an item it adds the cost of goods sold to the inventory assets account which is fine, I expect that. But when the charge comes through from the bank and I need to match it with something, I try to match it to the item I have already created which causes a duplicate increase in the inventory assets account. 

 

So an example would be I create a watch that cost 100 dollars. The transaction of me paying for that watch comes through and I need to tell QuickBooks that that $100 charge is what paid for the item I created. How do I match them together? 


As I understand this, you are creating an item with qty and cost

and then wanting to match the purchase

 

you only create an item with qty and cost if you are starting the company and have it on hand

otherwise the qty is zero and the cost is zero when you create the inventory item

then you enter a purchase for the item, and match the banking download to the purchase transaction

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