Question

Inventory duplicate expenses

Forum|Forum|4 years ago
January 9, 2022
2 replies
0 views

Ok I'm confused. We run an appliance repair company. We enter all our appliance parts we keep on our service vans in QBO. We enter the quantity on hand and the retail price (price we sell them at example $20) and chart this to Inventory asset account. At the bottom for that item it says purchasing information and we enter what price we paid for the item (wholesale price example $10) and chart this to Cost of Goods Sold. Well when I went to look at my Profit and Loss Statement I noticed what appears to be double dipping as an expense twice. What I mean is we purchase inventory throughout the month to keep our service vans full. So for example we need 10 heating elements at $10 a piece and we pay our vendor $100 with a credit card. Well in QBO that credit card transaction shows up under banking and we categorize it as Cost of Goods Sold. We then go under that inventory item and adjust the inventory item and add those 10 heating elements to the low inventory. Say I sell 7 of those elements this month. Well in my profit and loss statement for the month when i check out my expenses it shows that $100 payment under Cost of Goods sold and also (7) $10 payments (those 7 elements i sold) so it seems like I expense $170. Say I sell the remaining 3 next month it shows up as $30 expense. Also in my sales of products sold it shows the $20 price i sold them for as it should. I'm trying to figure out how to only show 1 expense instead of 2. Because the way we're doing it we expense $200 instead of $100 for those 10 heating elements we purchased at $10 a piece.

QuickBooks Online

AlexV

Level 10

Hi applianceallstars!

Thanks for reaching out to us. Allow me to explain why the transaction shows on your Profit and Loss report twice.

It's great that you're able to set up the inventory items the right way. However, you downloaded the expense from the Banking and categorized it but you also recorded it as an Expense transaction in QuickBooks Online. This is the reason why it duplicates.

You can match the downloaded transaction to the entry you manually recorded in QuickBooks Online to avoid duplicates. Follow these steps:

Go to the Banking/Transactions and select Banking.
Select the bank or credit card account you downloaded it from and proceed to the Categorized section.
Find the downloaded expense and click Undo. Go back to the For review section.
Locate the same downloaded expense and select it to expand the view, then click Find match.
On the Match transactions page, find and select the expense you manually recorded.
Tap Save.

Please check this link for your reference on what to do with the downloaded transactions on your banking: Categorize and match online bank transactions in QuickBooks Online.

Also, I added some links if you need more help in tracking inventory and reconciling your accounts:

I'll be here if you need more assistance with this. Take care!

Rainflurry

Level 11

It's showing up twice because you're expensing it twice - once when you buy the heating elements (to cost of goods sold) and then again when you sell them (again, to cost of goods sold). When you purchase inventory, it should be assigned to inventory (asset account), not to cost of goods sold (expense account) as you're doing. Then, when you sell the heating elements, $10 will hit cost of goods sold, you will collect $20 from the customer and that will hit income and you're gross profit will be $10 on the item.

The sale of inventory is expensed when you sell it, not when you buy it. There are a number of exceptions to that last statement, but for your purposes, it sounds like you should be assigning items to inventory when you buy them and to cost of goods sold when you sell them.

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