Should job material and payments be under the same account?

Hello there, @Arianna09. 

Thank you for dropping by here in Community. Let me give you some insights about inventory. 

The usual setup is Sales info should use an income account while Purchasing information should use an expense account. If you use the same account for sales and purchasing information, this will only offset the amounts in your report. Thus, isn't advisable to use it. 

You can check out this article on how to add inventory products in QuickBooks Online. I recommend referring to an accountant for additional details or opinions. 

Please don't hesitate to hit the Reply button. I'm always here to help. Have a great day! 

That makes sense. I wonder why "Job Materials Purchased - Cost of Goods Sold" is an option under income account when adding a new item to products and services. 

If I'm understanding correctly, I should change my material (pipe, faucets, tubs, etc.) to Sales of Product Income or Job Income? And when I write checks to suppliers I can continue to select Job Materials Purchased - Cost of Goods Sold as what I'm paying for? 

You're absolutely correct, @Arianna09,

Any sale of the item must be coded as income in your books, and expenses for purchases of additional supply. I'm enclosing a few related articles about adding items in QBO:

• How to set up products & services
• Track What You've Sold: Products & Services

• Add product and service items to QuickBooks Online

If you have other question or concerns about item setup or anything QuickBooks related, let me know in the comment below. I'll be right here to help you anytime. Have a good one!