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Community Explorer **

Products and Services Expense Account

My company hires others to do portions of projects. We give them Purchase Orders based upon the Products and Services we have. I am setting up my products and services in QBO now, should the services we purchase be assigned to an expense account or a liabilities account? We pay the Purchase Orders a little at a time as the project progresses. I believe this makes this a liability because it is something we will pay, but once paid it is an expense. Do I assign it directly to an expense account, or to a liabilities account?

2 Comments
Established Community Backer ***

Re: Products and Services Expense Account

items post to expense account

you enter the bill, that expenses the items, and sets up a debt you owe, accounts payable, then you pay down the debt

Community Explorer **

Re: Products and Services Expense Account

Thank you for explaining the steps for me. That makes more sense now.

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