Our business resells a lot of products that we markup. That markup pays for procurement, install, and setup labor. As I understand it, the labor is Service Revenue, and product costs are Product Revenue. My Objective: Split out our Service Revenue and Product Revenue, preferably in the Chart of Accounts (but I'm open to alternatives).
QBO Items can be configured with Price going into an Income account and/or Cost going into an Expense account. What happens if instead of setting an item's cost to go into an Expense account, we set it to an Income account for Product Revenue? Will it show up as a positive or negative amount within the income account? Is QBO smart enough to remove the cost from the amount going into the configured Price account, so we don't see inflated income revenue? Ultimately, we want an item's profit (price - cost) to go into a Service Revenue account, while the cost goes into a Product Revenue account.
P.S. Creating separate 'service' and 'product' items in QBO is not an option. We ingest thousands of products for various distributors into our PSA, which syncs with QBO. We would have to manually create and maintain all those duplicate items in our PSA, to sync with the separate QBO items. Not only would this be a huge time sink, but it would completely throw off our PSA quoting and contracting vehicles.
