Thanks qbteachment for the very detailed response. Not sure I follow your methodology. These homes are essentially "Goods" that I 99% of the time turn around a sell. I've actually forwarded your response and document to my accountant and bookkeeper to get their opinions..
... View more
So I run a real estate investment business where I purchase properties, perform renovations, and then sell. Currently I purchase all materials from HomeDepot with Gift Cards ($100-$1000 value each, in $100 increments) through a fundraising website that is tied to the companies operating bank account. For example: 123 Main Street has a material budget of $2250. I then purchase $2500 in Gift Cards (2x $1000 and 1x$500) from fundraising site that triggers a bank draft of $2500 out of my operating checking account. I then pay for the materials totaling $2250 at HD utilizing these GC's. Currently I categorize the full $2500 debit in the check register as "Repairs&Maintenance:Materials" and tag class "123 Main Street" so the expense shows up on the property balance sheet. As you notice though I only ACTUALLY spent $2250 on materials with the remaining $250 staying on the GC for future use; which may or may not be for 123 Main Street. What I would like to do is order say $10,000 of Gift Cards and create a credit balance in QBD that future material invoices could be applied against, there-by reflecting a more accurate representation of expenses at the class level. Any suggestions?
... View more