How would I go about setting up my used car dealership? We buy cars, have things fixed on them, get them inspected, and then sell them. I need help from the first step?

I responded to @hengel on another topic where you commented. I will copy that here:

"Someone suggested a WIP account as a work around"

Yes, because that is an Asset with Multiple inputs = accumulating the total invested. This is done for any process that improves the asset, or the asset cost comes from multiple inputs such as Purchase Cost, Import Duties, Broker Fees, improvement labor and materials, etc.

"leaving all of the costs in the WIP until the unit is sold."

No, you don't have to Leave it there. If you want to manage this as a unique inventory item, you them "buy from WIP" by using a Vendor name of WIP, and listing the WIP account on the Expenses tab with the negative total; put the real item on the items tab with the total Basis. Hit re-calc. This is a $0 Bill. Now your product is On Hand in inventory and fully costed.

"I toyed around with adding the unit into inventory immediately and adding the additional costs to the WIP account. Then turning right around and adjusting the inventory value by doing and inventory adjustment using the WIP account."

Yes, that works, too. The real issue is Dates Matter. Pay attention to the Date reporting.

"That cleared the WIP account and keeps the inventory value for all of the units correct.  I worked in the auto industry for over 30 years and find it hard to believe that QB can't get perpetual inventory right."

This isn't Perpetual Inventory. This is specific Items Names as "in progress." This is Production, really.

WIP = Work in Progress

CIP = Construction in Progress

Law firm = Advanced Costs

Lots of Industries use Other Asset tracking for expenditures for operational requirements.

3. Use the WIP bank account to "buy" the used car item you just created from the in-house vendor, the qty is one, and the total item cost is the total amount in the WIP account

I am unclear what exactly the steps you are wanting here.  I have the inventory item setup.  Can you go into a bit more detail on what you mean and how to "Buy" the item with the WIP bank account?

Thanks,

I don't use a WIP Bank account; Rustler uses that. Bank = Asset. I use Other Current Asset, because I am already Spending, from checking and on the credit card.

Example:

I pay for a vehicle and post that to Other Current Asset. I pay for an alignment and the Credit Card Charge is entered to show I just paid for Other Current Asset. All of the Spending is in WIP = Other Current Asset. Then, I buy that inventory item for that Total seen in WIP, on a Bill for the Vendor name = WIP. The Item on the Items tab is the Vehicle total invested Cost; then click on the Expenses tab and post that Other Current Asset account here using Negative for the same Total.

You just Bought the vehicle, fully costed into Inventory; you just Cleared Out the accumulated costs in WIP Other Current Asset with that Negative entry. Hit Re-Calculate, to see this Negative and Positive create a $0 Bill = Done. Use a Vendor Name = WIP.

Nice!  Thank You for the response.  I did it both ways.  Both worked but I need to do it again ;) and again...

Is there a real life solution? 

Hello there, Scarlett1963.

Thanks for joining this thread. So far, the solutions stated above by our dedicated Established Community Backers are the best way to handle your concern when setting up a used car leadership.

Allow me to add this article to get more information about certain topics you'd like to know more about: QuickBooks Desktop User Guidelines.

Please know that you're always welcome to post any questions you may have or want to share your insights and practices using the product.

I have employees that do work on the inventory. How do i post through their time sheets my labor costs for each vehicle?

Hello there, @vch.

I'd be delighted to help walk you through posting your employees billable time to record your vehicle's labor cost.

To start with, let's enable your time tracking preferences. Here's how:

1. Go to the Edit menu.
2. Select Preferences.
3. Choose Time and Expenses.
4. Go to the Company Preferences tab.
5. In the question, Do you track time?, select Yes.
6. Set the first day of your work week.
7. Put a check mark on the following:
   • Mark all time entries as billable.
   • Create invoices from a list of time and expenses.
8. Click Ok. 

You can now record the hours spent working on each vehicle, using either a weekly time sheet or a single activity entry.

Here's how to create an invoice for time:

1. Click  the Customers menu.
2. Select Invoice for Time and Expenses.
3. Hit Ok on the prompt that says Choose multiple customers to Invoice for Time and Expense.
4. Choose the Date Range and Template.
5. Select the Customer:Jobs.
6. Click Create Invoice.
7. Review the invoice detail.

If you want to to enter a specific Billable Time and Cost,  ensure to select the box that says Let me select specific billables for this Customer:Job.

Lastly, you can create a service for each work and create a class list for each vehicle and associate it to each line item on your invoice.

For additional insights, you may check out this article: Track job costs in QuickBooks Desktop.

Should you have other questions about recording your employee's billable time per vehicle, feel free to visit us here in the Community. I'm always here to help.

I am using qb 2016.  there is no Create invoices from a list of time and expenses. 

Using QB online for used cars, can I create a sales receipt that includes sale of the product or service, but also income accounts like doc fees or tag fees.  Those aren't necessarily considered "products or services".  Or is a journal entry better way to post a sale with credits to individual accounts from the chart of accounts? 

Hello EKH3,

You can create a service item for your document fees or tag fees to record your sales. Let me walk you through how.

1. Click the Create (+) icon.
2. Click Sales Receipt.
3. Under Product/Service column, select your service item. Then, enter the other information needed.
4. On the next line, click the blank field and select Add new.
5. In the Product/Service information window, choose Service.
6. Enter the Name, select an Income account from the drop-down.
7. Click Save and close.

Please see attached screenshots.

Once done, enter your fees in your receipt under the Amount column.

I've also added our page about income and expenses for future reference.

Drop a comment anytime if you have more questions. I'll be here to help.

Thank you ...

Another question: I am trying to use"classes" to achieve the following. Enter an expense attached to a "class",  ie: the vehicle and have it increase the value of the asset as opposed to hitting the P&L as an expense. I might not sell the car for two months and I'd like to look at, say, an Inventory Valuation Summary report and see the total dollar value of the asset with all adds. Using this method, (unless I'm wrong), adds the expense to the vehicle "register" and P&L immediately, but does not increase the asset value on any reports. On desktop, I could post an expense, then go through an inventory adj screen and update the value with dollar amount of expense and the asset would increase and expense would come off P&L.

Hi, EKH3.

I'd like to provide few insights regarding inventories and classes in QuickBooks Desktop.

To answer your question, yes, the method you're using is correct. You can enter or post expense transactions and update the value with a dollar amount of the expense. This way your assets will increase.

The following articles are good references:

• Balance Sheet and Inventory/Stock Valuation reports show different amounts for Inventory Asset accou....
• Use Advanced Pricing.
• Turn on Advanced Inventory.
• Set up Advanced Inventory.

If you require more information about the inventory feature in QuickBooks, you’ll find detailed instructions by pulling up the article in your company file. Just press F1 on your keyboard.

For additional help, you can also reach out to our QuickBooks Desktop Support.

1. Within your QuickBooks Desktop, click Help at the top menu bar.
2. Click Contact Us.
3. In order to route you to the correct support expert, we need to know what type of question you have. Give a brief description of your issue and click Continue.
4. We’ll provide you a few options. You choose which one is best for you.

If you have additional questions about inventory, please let me know, Have a good one.

I have QB "Online"; would this be the same method?

Hi again, EKH3.

I appreciate your prompt response. I can help share information with you on how class tracking feature works in QuickBooks Online (QBO).

You can use the class tracking feature to help track income, expenses, or profitability by business segment. In QBO, we also have other features that is more specific for your tracking and reporting needs, these are the following:

• If you do business in multiple locations, you can use location tracking instead. This is a more specific way of tracking your sales, purchases, and profitability by business location.
• If you work on projects, use the Projects feature to track your job costs and income. You can manage your work and see your progress from a single dashboard.
• If you need to classify the things you sell, group them into different categories. This way of grouping gives you a clearer picture of your sales.

To know more on how this feature works, you can check out below articles:

• Get started with class tracking in QuickBooks Online
• Track your transactions by class
• Run reports by class
• Set budget targets for each class

You can always get back to me if you have any other questions, I'd be happy to answer any questions you may have. Have a great day!

I am simply trying to determine if I can add a repair or some other expense to an inventory asset (which would increase its value).  I can in QB Desktop, but am not seeing this capability in the Online version.