My company purchases supplies up front and then adds them to the clients bill... Do these original purchases go under COG sold or job supplies or reimbursable expense???

Hello there, wayne,

Thank you for reaching out to us here in the Community.

Let’s check the Account details section so you’ll be able to verify what accounts your original purchases are categorized. Here’s how:

1. Go to the Expenses section from the left menu.
2. Under Expenses tab, find and open the Bill transaction.
3. Select the Account details arrow drop-down.
4. Review the posting account if the purchases are under Cost of Goods Sold, Job Supplies, or Reimbursable Expenses.

I’ve added a screenshot below to show you the last two steps.

If you want to change the posting account, it will affect your books. I’d suggest consulting an accounting professional to help you classify the correct account for the item and ensure your books are set up correctly.

To learn more about chart of accounts and COGS tracking in QBO, you can check out these articles below:

• Understand QuickBooks Chart of Accounts
• Understand Inventory Assets and COGS tracking

If I can be of any further help, don’t hesitate to leave a comment below. I’m always here to help, wayne. Have a great day!

@RaymondJayO

Your cut and paste said

Review the posting account if the purchases are under Cost of Goods Sold, Job Supplies, or Reimbursable Expenses.

Which is EXACTLY the question that was asked - would be nice if you answered it

@wayne2

Billable expenses are only in QBO Plus, so if you have plus then that is what it is.

It is not COGS, usually you post to a job materials expense account

In company settings turn on make expenses and items billable
check mark to track billable expenses and items as income
then in company settings>advanced>chart of accounts click the edit pencil and select the billable expense income account

Why intuit separated the two related settings is anyone's guess

When you enter a vendor bill/CC charge/etc, you will see a Billable check mark box, check that and select the customer name in the customer block. The next time you invoice your customer, the system will show billable expenses on the right side that you can click the add link to add the bill to the invoice.  IF you do not want to add the bill to the invoice, leave the billable check mark box blank, the cost of the expense will still count against the customer

Hi there, @Rustler,

Thank you for your additional inputs about the categorization of the original purchases. Other users will find this as helpful if they have the same inquiry about this.

I'm following. This question is exactly what I've been trying to figure out this past few weeks. As a handyman usually we buy materials up front that we include in the cost of the repair and it is not actual income. It just cancels out the original purchase. I need to know how to handle this ASAP.