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What is the best method for entering drop ship orders?

We drop shipped an item from a supplier. We are paying this supplier for this order, and the customer has already paid us via our website. So would I enter this as a sales receipt, a 'bill', or even a credit card charge? And from what account? Is it considered an expense or income? Thank you for any help offered!
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Best answer 12-10-2018

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it works best if you use a non inventory item check marke...

it works best if you use a non inventory item check marked to be used in both an assembly or resale, select COGS as the expense and your income account

sell that item

purchase it

then you can report on item sales too
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P.S. This person's original order via our website has alr...

P.S. This person's original order via our website has already been entered into QB's as a sales receipt. Now I just have to enter the drop ship order that I paid for via our company credit card (even though customer already paid).
Established Community Backer ***

it works best if you use a non inventory item check marke...

it works best if you use a non inventory item check marked to be used in both an assembly or resale, select COGS as the expense and your income account

sell that item

purchase it

then you can report on item sales too
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I'm still confused. I set up the item as a non-inventory...

I'm still confused. I set up the item as a non-inventory part. But if I then do it as a "bill" there is nowhere to choose the item. And if I do it as a sales receipt I am choosing the customer (who already has a sales receipt entered for the order), rather than the supplier who drop shipped, and I paid them for the item.
Established Community Backer ***

on a bill you use the item tab, select the non inventory...

on a bill you use the item tab, select the non inventory item

sales and purchases are two different things. when you use that non inventory item set up like I explained,
a purchase posts the cost to the expense account on the item screen, COGS
a sale to a customer posts the sales price to the income account on the item screen
then on the P&L, income is reduced by expenses to get net profit

if you are importing sales, then the import should identify the item being sold
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Thank you very much for your help! I entered it as a "bil...

Thank you very much for your help! I entered it as a "bill" but used the "item" tab, and selected the "non-inventory" item and the customers name. Then I just paid it. Hope that was right! Seemed too easy!
Established Community Backer ***

that is all there is to it

that is all there is to it

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