Posting to a Cost of goods account and how to post to a revenue account
We are a golf course that is subcontracted by an HOA to maintain the subdivision.
We are paid a monthly maintenance fee for this service. We have this setup as a revenue account.
How do post a payment to that revenue account? Just to make sure i am doing it correctly.
Next I have to purchase items to fix the irrigation system in the subdivision. Per my corporate office the items must go to a COST of Goods Sold account. I have that account set up. Now this is where I need some help. How do I post these billable expenses to the cost of goods account? Do I have to create a bill in QBs? I can't figure this out.
Then my office told me that I need to handle the reimbursement payments for these expenses by putting them in the same revenue account as we have for monthly services. That way they will wash out in the income section. How do you enter the payments into the revenue account?
Thank you for any assistance that you can give me.
Re: Posting to a Cost of goods account and how to post to a revenue account
I’m happy to see you in the QuickBooks Community, dbackpro.
Based on the details mentioned, you can use the Invoice feature to record the revenue payment and then create a bill to post the billable expense. To easily track the transactions, you’ll have to turn on the Time & Expenses feature first.
At the top menu bar of the company file, choose the Edit tab and select Preferences.
Click on the Time & Expenses menu.
On the Company Preferences tab go to the Invoicing Options section and mark the boxes for the following: *Create invoices from a list of time and expenses *Track reimbursed expenses as income *Mark all expenses as billable.
Hit the OK button.
Since the revenue account is already set up in QuickBooks, create an invoice each month to record the maintenance fee. While you’ll have to enter a bill for the billable expenses.
Just make sure the items are tracked to the Cost of Goods Sold account. If you haven’t created the goods, let’s go ahead and add them.
At the top menu bar, choose the Lists menu and pick Item List.
Click on the Item drop-down, then select New.
Choose the correct item type.
In the Account drop-down, pick the Cost of Goods Sold account.
Click on OK.
To create the transaction:
Choose the Vendors tab and select Enter Bills.
From the Vendor drop-down, select the payee.
Input the date in the field box.
Fill in the remaining of the fields.
Go to the Items tab and enter the product in the Item column.
Make sure to input the amount and customer.
Mark the box for Billable.
Click on Save & Close.
Check out the steps below on how to apply the billable expense to the customer invoice.
At the top menu bar, choose Customers and select Create Invoices.
Click on the drop-down for Customer:Job and pick the customer.
In the Billable Time/Costs window, mark the radio button for Select the outstanding billable time and costs to add to this invoice and hit the OK button.
On the Choose Billable Time and Costs page, go to the Items tab and select the item.