We are a golf course that is contracted to maintain the surrounding residential area. We are paid a monthly fee for the service. We also purchase items ( flowers, chemicals, mulch, etc) to maintain the landscaping, I have the monthly fee listed as income. but how do I handle the other purchases? We purchase the items and then bill the HOA for reimbursement or my superintendent will purchase the items and then we will have to reimburse him and still have to post it. I was told to use the income account and then create a cost of goods account to wash it out.
I am lost. Thanks