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Level 1

How do I add multiple expense items together to get the value on one inventory item in QBO? EX - Cost plus customs fees

 
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Anonymous
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Re: How do I add multiple expense items together to get the value on one inventory item in QBO? EX - Cost plus customs fees

Assuming you use QBo Plus (which has inventory functions).

QB is primarily designed to do Buy+Sell item accounting - meaning you sell exactly what you bought.  Combining or adding to items is possible - but those are extra steps that are taken later and require some manual calculation and control to ensure you get the right accounting outcome.

In your case adding import costs to inventory items that are being purchased will require an ' 'inventory adjustment' after the item purchase and import bills are entered.  You will have to manually calculate how much import cost to apply to each item.  When making the entry you should set the 'adjustment account' to be the same account where the import charges were expensed on the vendor bill.  This removes the expense and adds it to the inventory item.

The alternate to doing this extra work is to just expense the import costs as they arise (no adjustment) but continue to take those costs into account when setting sales prices. The choice to do this  depends how significant the import costs are compared to the item values.

Level 1

Re: How do I add multiple expense items together to get the value on one inventory item in QBO? EX - Cost plus customs fees

Mike,

The inventory adjustment in QBO does not allow a value adjustment.  If I try to add the customs fees to the item then I get additional quantities.  There is only one item and the customs fees are significant so I need to add them to the inventory item.  I tried using a starting value and that didn't work either.  I think I am going to have to manipulate the original wire entry to get this right.

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