Inventory Items Question

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???

Reply to
Jimmy
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Lots, but only one comes to mind in your situation. Why not pick the COGS account. Just because the big bad pop up tells you that most users do not choose a COGS account does not mean you can't or should not. Go ahead, do it.

Reply to
Allan Martin

Enter the item and qty on the customer's invoice at selling price $0. Add the word "included" to the description.

An alternative that is a little more elegant, but also a little more work, is to create a Group Item which can include mulch and/or any other Items you wish.

single line

somehow

adjustment

Reply to
!-!

It is much more trouble than it's worth to maintain an "inventory" item that gets sold almost immediately.

When you buy your mulch you can apportion the purchase based on historical averages. For example, if you know that historically you use 60% of your mulch for "tune up" contracts, when you pay, say, $40 for a load, enter:

COGS - Contract $24.00 COGS - Mulch $16.00

At the end of the year, you won't be precise, but you will be accurate.

We, for example, sell some special computer hardware to our users. When they order it, we order it. We maintain no "inventory" save one or two pieces for emergencies. It comes, it goes, and QB never knows about it.

Reply to
HeyBub

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