what account would i post shop supplies to ie. grease, oil, etc.. product that i purchase for use on car repair but don't itemize on an invoice to a customer..

What account would I post shop supplies to - ie. grease, oil, etc. - product that I purchase for use on car repair but don't itemize on an invoice to a customer. I want to enter it to the vendor bill but not sure if i need to enter it as an expense? I am using qb.


Anna


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Hi Anna!

If your buying supplies that don't get invoiced specifically like a part would - for instance, a battery or oil filter, then you would set up an Expense account - call it "Shop Supplies Expense" - very original, eh? LOL

When you enter a vendor bill - just make a line entry for "Shop Oil" and post it to "Shop Supplies Expense".

Hope that helps!

Good luck!

Kathy

Comments for what account would i post shop supplies to ie. grease, oil, etc.. product that i purchase for use on car repair but don't itemize on an invoice to a customer..

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Dec 09, 2014
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by: Kathy

Anna,

If you want to account for each can of grease, then yes, call it an 'item' and put it in your inventory.

And your inventory does go thru COGS - let me explain that.

Most small businesses only count inventory at year end. Then they make an adjusting journal entry to lower inventory, and increase 'materials' or 'purchases' (COGS Accounts) to cost out the inventory items they have used during the year.

But if you don't want to account for each can of grease or each shop towel, then post the purchase costs to a Shop Supplies Expense account.

Hope that helps!
Kathy


Dec 04, 2014
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Shop Supply
by: Anonymous

or is it an item.. that is what else is confusing me..

Dec 03, 2014
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Shop Supplies
by: Anonymous

Thanks Kathy... I guess I was thinking it should be applied to COGS.. appreciate your help :)

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