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Posted by Laura on December 9, 2006, 4:00 pm
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>
>>
>> Laura wrote:
>>> >I sell used books, and I can't use the "inventory item" feature of
>>> >Quickbooks, since each individual book is different. I keep details on
>>> >each
>>> >item for sale in a separate data base.
>>> >
>>> > Is there a way to add purchases to inventory and deduct sales from
>>> > inventory without an "item", just a dollar amount? Should I set up
>>> > some
>>> > different type of accounts and use JE's somehow?
>>> >
>>> > Any help or suggestions appreciated.
>>
>> You may also use a generic inventory item like "Book". Add a unique
>> title, author, ISBN, to the purchase entry. Use the same description on
>> a sale. The inventory can be exported from QB to Excel sorted and
>> subtotalled to give you a rough list for inventory.
>
>
> OK. I understand about the periodic inventory from Laura's response (Thank
> you Laura!) I do have a low volume, and I know my purchase price on every
> book sold, so it's not unreasonable for me to keep the inventory updated
> for every sale, although the interval could be longer (daily, weekly) if
> my volume increased. The part that is just driving me crazy is how to
> reconcile Quickbooks with that accounting course I too too many years ago.
>
> According to my text book, Cost of Goods Sold is a calculation:
> Beginning Inventory
> + Net purchases
> + Freight in
> = Cost of goods available for sale
> - ending inventory
> = Cost of Goods Sold
Yup, that's correct. If set up correctly, QB will automatically adjust
Inventory and COGS as you buy and sell your books.
> So I'm thinking that I need some account called "Inventory" and my only
> choices in Quickbooks seem to be "Inventory Parts" and "non-Inventory
> Parts". I know "Inventory parts" won't work for me, and I can't really see
> that "non-Inventory Parts" is much better, but it's the only account type
> available that seems at all reasonable when I try to add an item to the
> Vendor Payment "check".
>
> I've been reading posts all morning, and here is what I think will work. I
> would appreciate it if you could give me your thoughts.
>
> Create an item called "Books" as a "non-Inventory Part." Check the "This
> item is used in assemblies or is purchased for a specific customer job"
> checkbox. This will enable me to associate two accounts with it.
>
> On the "Purchase Information" side, leave the cost blank and make the
> expense account "Cost of Goods Sold". On the "Sales Information" side,
> leave the sales price blank and the income account "Merchandise Sales."
>
> When I use this to enter purchases and sales, both are updated, but now
> I'm stuck. I think I need a JE to credit Cost of Goods Sold and
> Debit...what?...I still don't seem to have an inventory account anywhere.
>
> Arggggggg! Am I on the right track or totally lost?
If you want to use QB's inventory you want to use "Inventory part". First go
into Preferences and enable Inventory under Items and Inventory. Set up your
Inventory G/L account. When you create the Item just specify the Inventory,
COGS and Income accounts per your CoA.
When you purchase items QB Debits Inventory/Credits A/P or Cash.
When you sell an item, QB posts the foolowing transactions:
Debit COGS/Credit Inventory (cost)
Debit A/R (or cash)/Credit Income (sale price)
This 2 part entry eliminates the need for any JE to COGS or Inventory at
year end.
> Alice....
>
>
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