cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Inventory basics question

I am trying to enter all our inventory since 2012.  Still rather new and shaky to it all.

 

When entering freight cost, I was dividing up the cost into each part and being done.  The owner does not want it done like that.  He would like to be able to see a report of how much the item cost without having the freight in the cost of the item as well.  How can I add the freight in as a line item?

Solved
Best answer October 27, 2018

Best Answers
Highlighted
Level 15

Inventory basics question

Regardless of what the owner wants, the IRS is specific, the cost of inventory it all costs to get it on hand and ready for sales.  inbound shipping, taxes, customs, etc etc

 

but if he insists, create an expense account called inbound shipping and use a non inventory item named for that on the bill, enter the amount.

View solution in original post

6 Comments
Highlighted
Level 15

Inventory basics question

Regardless of what the owner wants, the IRS is specific, the cost of inventory it all costs to get it on hand and ready for sales.  inbound shipping, taxes, customs, etc etc

 

but if he insists, create an expense account called inbound shipping and use a non inventory item named for that on the bill, enter the amount.

View solution in original post

Highlighted
Level 1

Inventory basics question

Ok, so what about what when you purchase inventory and have it shipped through a third party. it wouldn't be included on the invoice.  How do you handle that?

Highlighted
Level 15

Inventory basics question

Landed costs require a work around

 

You enter the inventory with bill to stock it

 

when you get third party shipping or customs or whatever, you pay that bill using a clearing expense account

then you edit the bill that stocked the items, add a portion of the landed cost to each item total, and then chnage to the account part of the transaction, select the clearing expense account and enter the amount as a negative number.  The bill amount will not change if you did the math right, save and click though any warnings about payments being applied

 

QB will revisit the the stock transaction and adjust item average cost, and if you sold some in between the bills, QB will adjust COGS as well.

Highlighted
Level 3

Inventory basics question

Is this the same requirement for items that are not part of inventory?  For instance, we are an audio integrator business, so we purchase gear for our use and possibly for the use of doing gigs/rentals.  When we purchase gear or related items, we are charged for the items and a separate charge for shipping.  I can not figure out how to account for that shipping charge if we're not selling the gear and it's not part of inventory for sale.  It would be great if someone came up with a "shipping chart" for all the different ways to account for shipping.  

Highlighted
Level 15

Inventory basics question


@Notalemming wrote:

Is this the same requirement for items that are not part of inventory?  For instance, we are an audio integrator business, so we purchase gear for our use and possibly for the use of doing gigs/rentals.  When we purchase gear or related items, we are charged for the items and a separate charge for shipping.  I can not figure out how to account for that shipping charge if we're not selling the gear and it's not part of inventory for sale.  It would be great if someone came up with a "shipping chart" for all the different ways to account for shipping.  


When you purchase for the business or the job, all costs are posted, they do not have to be split out.

 

If you buy a reel of cable locally for $55 including tax, that is the amount of the expense.  If you order a reel of cable for $25, plus $10 for shipping, then $35 is the expense

Highlighted
Level 15

Inventory basics question

What you paid total, including inbound shipping and Sales taxes, is your Cost in the US for what you bought.

 

If you bought a Mixer board or PA system that is expensive enough to fall under the Fixed Asset regulations, that still is All Costs as Fixed Asset basis. You don't split it out.

Need to get in touch?

Contact us