I resell a few services that I buy from other businesses to my customers, among services I provide myself.
A simple example: I buy 50 Apples for $10.00. I resell that to a customer for $20.00.
The $20.00 I get from the customer, goes to my Sales Income account. The $10.00 I spend, goes to my services expenses account.
Now here is the tricky part I can't figure out, if I am selling oranges and grapes that I own myself to my customers, among the apples I buy from others to sell to my customers, how would I do that?
Right now, I am doing this: - Invoice customer for Orange, Grapes, and Apples. - Record cost of Apples as an ordinary business expense.
My problem is, I am trying to figure out how to show what the actual profit for that invoice was in total. It doesn't show me that I spent money on Apples for that invoice...
As confusing as this is, I hope someone understands my amateur accounting.