1. Home
  2. QuickBooks Discussions
  3. How to buy from inventory for internal use?

How to buy from inventory for internal use?

I still don't know exactly how to do this (or perhaps I have forgotten), but I must. I am a (very small) C corp and need to use items originally intended for resale (sales tax was not paid at time of purchase). QuickBooks Pro 2009.

Any hints out there?

I guess I am good as far as setting up my company as a customer and invoicing, which I believe will take care of the sales tax obligation, but not entirely clear on what happens to the reports, income tax, etc. when I pay the invoices, I guess through a clearing account? Doesn't this inflate the company's gross? Is that normal?

Reply to
Phil Nelson
Loading thread data ...

Go to Items (or Item List) --> Activities (tab at bottom) --> Adjust Quantity on Hand. Then just fill out the screen, being sure to enter the adjustment account, class, etc. Enter the new quantity on hand.

Don't know what state you're in, but here in NC the Sales Tax report has a line for items purchased for personal use. I just enter the cost of the item that was adjusted in the previous paragraph, & it computes sales tax.

Hope this helps...

Reply to
Frank Kirk

Most users do not realize that in many cases taking items out of inventory and using it for use in their own business results in a transaction subject to use tax. Pulling items out of stock and donating the goods to charity can also trigger a use tax situation. With so many states today cash starved you can bet the auditors are on the prowl for theses transactions.

Reply to
Haskel LaPort

That's too easy! Thanks!

I couldn't find that in the help or searching the web.

Reply to
Phil Nelson

It also means you will have to enter another adjustment transaction when you pay your sales tax because your sales tax liability account won't have the right amount in it and your P&L won't either. It is only off by the tax so unless you pull a lot of stuff or a big item, it can wait.

Reply to
Golden California Girls

I am looking for an accounting of several items, purchased over a year (I pay sales tax yearly because the amount is quite small). I need QuickBooks to have an account of everything so that when I go to fill out the tax form, I don't have to remember and manually add every purchase.

Is this commonly done with inventory adjustments?

Reply to
Phil Nelson

Well, it's not uncommon. Try this:

Edit --> Find (or Ctrl + F). Click on the Advanced tab. Filter by:

Date (whatever dates you want) Account - Inventory Transaction Type - Inventory Adjustment.

Then click on the button named Find. That should give you what you need. Click on the button named Report, if you want a print-out (customizing the report, if you want).

Also, the Golden California Girls are indeed correct. You'll have to adjust your sales tax liability account by the amount of sales tax due on the inventory adjustment. I neglected to mention this in previous post.

Reply to
Frank Kirk

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.