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3dxtrusion-gmail
Level 1
I am using QB Essential. Suppose I ordered a dozen T shirt at cost of $3/shirt. Then I printed it with an additional cost of $2/shirt . Total cost $5/shirt. I am selling at a price of $8/shirt with a profit of $3/shirt. Now how should I manage those cost and price. What accounts should I create or charge to, so my cost and profit are separated and eventually I know my taxable income. Please explain that.
2 Comments
Rustler
Level 15

QBO is not really suited for this even if you had QBO+ with inventory

 

Post the purchase price to an asset account you name purchases, that includes the printing price

 

for each shirt you sell do a journal entry (or several shirts at one time)

debit COGS and credit purchases for the total of $5 * number of shirts sold

 

you may have to create an account called COGS in essentials, I am not sure if it has that type of account but if not the account type can be created as an expense type account

Fiat Lux - ASIA
Level 15

@3dxtrusion-gmail 

Consider having an inventory management app with a simple assembly feature

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