@AllValleyEquipmentRepair wrote:
I have a tractor repair business, I am set up for resale with my state, and i don't keep any parts in inventory. I currently have a tractor in my shop that needs a radiator. When i purchase the radiator i need to mark up the price when i re-sell it. This is where i need advise. When i purchase the radiator ill add it as a non inventory part and when im done with this tractor ill add the radiator (non-inventory part) to the invoice. Do i set the expense account for purchasing this radiator to COGS?
No, use a cost of materials expense account. COGS is related to retail inventory when you file your taxes, easier to not get the two types of expense mixed
Another question is i just upgraded to qbo plus from simple start and thinking i don't really need it. Although Under bills and expenses option i have (Show Items table on expense and purchase forms) checked. Will i lose that option if i go back to simple start? I seems like a good option so i can always look at a non inventory item on an invoice and trace back to where i bought it from easily. Example: I would like to link the expense for the radiator to the non-inventory part number for the radiator. If there is a better system to buy and resell parts please advise me. I typically buy a part and resell it the same day.
Simple start is too simple, if you downgrade go with essentials
In QBO+ you can turn on billable expenses in company settings turn on make expenses and items billable
check mark to track billable expenses and items as income
then in company settings>advanced>chart of accounts click the edit pencil and select the billable expense income account
Why intuit separated the two related settings is anyone's guess
When you enter a vendor bill/CC charge/etc, you will see a Billable check mark box, check that and select the customer name in the customer block. The next time you invoice your customer, the system will show billable expenses on the right side that you can click the add link to add the bill to the invoice. IF you do not want to add the bill to the invoice, leave the billable check mark box blank, the cost of the expense will still count against the customer
