Inventory question.
I run a landscaping business. We have two types of spring clean-up accounts. The first is by contract; for a set price we come in and do everything that needs to be done and lay fresh mulch. The second type is by actual cost; we charge for time and materials. I have mulch set up as an inventory item since, while I don't actually keep any in inventory, I do track where it goes.
So with the second type of account everything works out well. I purchase say 4 yards from my supplier. In QB I write a check for that amount and on the items tab, I pick "Mulch" and put in 4 for the quantity. QB now shows that I have 4 in inventory. Then on the customer invoice, I list 4 yards mulch as a line item and I now have 0 in inventory according to QB...perfect.
With the first type of account however, my problem arises. I go to my supplier and buy 4 yards and write a check in qb so that I now have a qty of
4 in inventory. WHen I bill the customer, however, there is a single line item for "Spring Clean up". How can I make an adjustment so that the 4 yards that I used for that job dissapear from inventory and are somehow attributed to that customer? I though I could make an inventory adjustment but in order to do that I have to pick an expense account.I want the 4 yards to show up as COGS and income when I run reports.
Any thoughts???