Accounting for Gallery owned artwork

Welcome to Community, @BillM.

I'll share some information about categorizing arts. You'll use the expense account for the indirect costs of your business. While you'll use the COGS account for direct expenses related to what you sell (raw materials). If you have doubts about the accounts to use, I recommend consulting your accountant.

If you don't have an account, check out this site: Find a ProAdvisor.

In the meantime, here's how to create an account in QuickBooks Online.

1. Go to Accounting.
2. Choose Chart of Accounts.
3. Select New.
4. In the Account window, enter the account info.
5. Click Save and Close.

I've also added these handy articles below for additional reference. It has details on how to handle COGS account.

• Understand inventory assets and cost of goods sold tracking

• Can I track inventory manually in QuickBooks Online?

Please click the Reply button below if you still have questions or concerns with expense accounts. I'll be around for you. Have a great day ahead.

Thanks for your reply.  I'm sorry but I don't really understand what you are saying.

Your reply said "You'll use the expense account for the indirect costs of your business. While you'll use the COGS account for direct expenses related to what you sell (raw materials)."

If I buy a finished painting for $100 and subsequently sell it for $200 it sounds like you are saying I should use an expense account to record the $100 purchase and an income account to record the $200 sale.  What if I can't sell the painting right away?  How does the value of that painting appear on the books? (Is a finished painting considered Raw Materials? Is it really an "Indirect Cost"?

Thanks for your patience.