Part of our business is to purchase used lawn care machines, refurbish them (COGS Labor & Parts), then resell them.
How should I record the transactions?
Purchase item – bank withdrawal, Create an expense entry. Match together?
Question: Does the expense entry category need to be recorded as COGS? Is the initial purchase of the item considered COGS? I see both yes and no answers on the internet.
Add the item to non-inventory. Do the work.
Invoice/sales Receipt which includes the Item from inventory, Labor (COGS), Parts (COGS).
Question: Where do I put the sales price? Does that go into the sales section of the non-inventory item. Should I put the price I paid for the item in the purchased section of the non-inventory item?
I'm afraid I'm recordinig the transactions incorrectly and the books are not correct.
Thanks,
Bill
