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Level 1

When entering the owners 'Distribution' in Expenses - in the same screen can I enter Cost of Goods Sold (for Customers Materials) related to the same job??

When entering the owners 'Distribution' in Expenses under his name  - in the same screen can I enter Cost of Goods Sold (for Customers Materials) related to the same job??
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QuickBooks Team

When entering the owners 'Distribution' in Expenses - in the same screen can I enter Cost of Goods Sold (for Customers Materials) related to the same job??

Thanks for joining us here in the Community, aaronsonrepairsl

 

I'm here to help check this out  and share some insights about how the COGS accounts works in QuickBooks Online. 

 

The Cost of Goods Sold is a specialized expense account used in tracking inventory. Once you record a sale of an inventory item, the program automatically increases COGS depending on the item's cost.

 

For more details, refer to this article:

 

Impacts of inventory tracking on balance sheet and profit & loss reports

 

To determine your company's profit margin for every product sold, the amount in COGS would be deducted from the sale price of the item. You can use the COGS account  along with the owner's distribution in the same expense type of transaction. 

 

However, since this process can have a specific impact on your books, I'd recommend consulting with your accountant. I can help you in running the program and they'll be able to provide the best business practices you're looking for. 

 

If you have questions with the process, don't hesitate to let me know. I'll keep any eye on your response. 

 

Have a great day! 

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Level 15

When entering the owners 'Distribution' in Expenses - in the same screen can I enter Cost of Goods Sold (for Customers Materials) related to the same job??

@aaronsonrepairsl

 

I think there is a terminology issue here.

an owners distribution is not a company expense, and is only used when the company is taxed as a corporation.

If you explain the issue and what has happened that would help a lot

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Level 15

When entering the owners 'Distribution' in Expenses - in the same screen can I enter Cost of Goods Sold (for Customers Materials) related to the same job??

I think "Expense" as used here = Writing a Check and entering the Split Details.

 

Yes, you can show the Owner is taking a draw from equity and also getting repaid for business expense paid personally, as Split Detail on the Check Expense entry for the banking.

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