How to set up warranty work

Welcome to the Community, @JLiotta.

I'm here to help you set up warranty work in QuickBooks Desktop (QBDT).

We can create a warranty expense account and overhead (OH) cost in QuickBooks Desktop involves creating accounts and items to properly track and categorize these expenses. Here's a step-by-step guide:

1. Open QuickBooks Desktop.

2. From the top menu, click on "Lists" and then select "Chart of Accounts."

3. In the Chart of Accounts window, click the "Account" menu at the bottom left and choose "New."

4. Select "Expense" as the account type and click "Continue."

5. Name the account something like "Warranty Expense" or "Warranty Work."

6. Specify the tax-line mapping (if applicable) and provide additional details as needed.

7. Click "Save & Close" to create the warranty expense account.
   
   Once done, follow the similar process as above to create an (OH) cost account.

Next, create a warranty service items.

1. Go to "Lists" and select "Item List."

2. In the Item List window, click the "Item" menu at the bottom left and choose "New."

3. Choose "Service" as the type of item.

4. Name the service item something like "Warranty Work" or a specific description relevant to your warranty service.

5. In the "Account" field, select the "Warranty Expense" account you created earlier.

6. Set the "Tax Code" as applicable to your situation.

7. Optionally, provide a description for the item.

8. Click "OK" to save the item.
   
   

Then, Record Warranty Work Expenses.

1. When you incur warranty work expenses, create a bill or expense transaction in QuickBooks Desktop.

2. In the "Expense" or "Item Details" section of the transaction, select the "Warranty Work" service item.

3. Enter the amount of the warranty work expense.

4. If the warranty work involves overhead costs, you can allocate a portion of the expense to the "Overhead Costs" account by entering it as a separate line item with the appropriate service item.

5. Complete the transaction by providing additional details as needed and saving it.
   
   

In this case, it would be best to consult your accountant to ensure your books is acurate.

Once done, you can run the Profit and Loss report in QuickBooks Desktop filtering the "warrant expense" account to verify the data are accurate.

If you want to save the customization options for this report so you can access it whenever you want, click the Memorize button at the top. See this article for more information on how to do it: Memorize report.

Let me know if you have other concerns while managing QuickBooks. I'll get back to you right away. Have a great day.