Inventory

I can share some insights when importing invoices in QuickBooks Online, @Haseeb. 

Just make sure that you purchase the items that are going to sell so that they will not cause a negative inventory. A billable expense is an expense you incur on your customer’s behalf when you perform work for them. You can easily record and track billable expenses so your customer can reimburse them when they receive their invoice. 

1. Go to + New.
2. Select Expense, Cheque, or Bill. Learn when to use expenses or bills.
3. From the Payee ▼ dropdown, select the supplier. This opens a window with their open purchase orders.
4. Click Add for the correct purchase order. It adds the items from the purchase order. They appear in the Item details section.
5. If you plan to bill a customer for a specific item, select the Billable checkbox. Then add the customer you plan to bill in the Customer column.
6. Select Save and close.

When you don't update the price of your product on the invoice, inflation occurs. To avoid confusion when entering the item's price on the invoice, we advise buying the product first.

With this, let's consider creating your expense with no negative entries since it is already a money-out transaction. And it will automatically reduce the quantity of your inventory. Learn more about your transaction with this article: Enter and Manage Expenses in QuickBooks Online.

On top of that, I've also included this reference helpful with the resources needed while with your expenses and vendors: Enter expenses, pay bills, write checks, and manage suppliers in QuickBooks Online.

Don't hesitate to post again here if you have other questions or concerns with QuickBooks tasks and navigations. I'm always around and happy to help. Take care and stay safe! 

Yes, I understand all that, but what Solution do I have now? I already made the mistake of importing invoices first, Now I don't want to delete invoices cuz that will create unnecessary entries that further messes everything up. Is there any solution to now fix the negative items, they are already counted as billable expenses, I have uploaded the purchases but they are being taken as cogs instead of income.

Hello there, Haseeb.

Thanks for getting back to us. Allow me to chime in and share information about importing invoices and purchase items in QuickBooks Online (QBO).

Inventory Cost of goods sold (COGS) is affected when you sell inventory items on invoices or sales receipts. This offsets the decrease in your Inventory asset account, and the other accounts affected will be an income account as well as the Accounts receivable account.

Additionally, COGS depends on the purchasing transaction's cost. If you haven't entered an expense for the inventory item, COGS will show a zero amount when added to the invoice. Then, if there's no initial cost on the inventory item, there's no amount on COGS when sold.

You can consider creating a journal entry to transfer money from an asset, liability, or equity account to an income or expense account. However, I suggest consulting your accountant for further guidance with selecting the proper account to use. Refer to this article for more information: Create journal entries in QuickBooks Online.

To know more about how the Inventory feature works, consider checking out these articles:

• Impacts of inventory tracking on balance sheet and profit & loss reports.
• Understand inventory assets and cost of goods sold tracking.
• What is FIFO and how is it used for inventory cost accounting?

For more tips and other resources you can use in the future, I recommend visiting our website: Self-help articles.

Please post again or leave in this thread if you have more questions about this or anything else. I'll be more than willing to assist. Take care.