I purchased parts for our product manufacture and received a bill. The bill includes a shipping charge. I'm now entering the bill into Quickbooks. I've entered the parts cost as items for inventory. I want the shipping charge to be including in the COGS. Do I enter the shipping charge as an Item (with an income account) or enter it as an Expense? I assume Item, but want to check. We're a new company and new to Quickbooks. Your help is greatly appreciated.
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If the items purchased are inventory items you stock, you portion out the inbound shipping across the items by changing the total amount per item, when you click out of that box QB will redo the per item rate
if the items purchased are not inventory then include the shipping with the cost when you post to an expense account
The shipping charges associated with my receiving inventory can change from time to time for the same items purchased. How do I account for that. That is to say I could order widget number one and get three of them at a time and pay a certain amount of freight for that And my next order can have one widget number one and other items which will increase the shipping costs or that total shipment how do I portion it out