Are items necessary?


J

JRDtechdotnet

I don't like creating a new items for everything since most of the time its a
per job expense. Lets say I sell someone a new hard drive, when I invoice
I'll select account and choose the 'Supplies' expense account I'll write in
the description 'hard drive' and type the amount(NOT the amount I paid but
the amount I'm selling it for).

For vendors I'll click on record new expense, select 'distributors' expense
account(which I created), type hard drive in the description, and enter the
amount I actually paided for the hard drive.

Two questions based on above:
1. Is there a problem with the way I'm doing this, will I have any issues
when I do my taxes in the next month?

2. Does it matter that I'm invoicing my customer with the supplies expense
account but recording expensive from my vendors under the 'Distributors'
expense account?

Thanks you so much for your help.
 
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J

JRDtechdotnet

See I'm not setting up any items at all. When I sell a parts I'd invoice it
under 'supplies' expense account. I'm screwing up aren't I? I should be
either creating items for each part or invoicing parts under a income
account.
 
J

JRDtechdotnet

Let me know if this is accurate:
Parts purchased by me through a vendor goes under an 'expense account'
Parts sold by me to a customer should be under an 'income account' or I
should make an item and select income account. It seems like my profit/loss
is accurate but the way I was doing it I was screwing myself out of claiming
deductions at tax time. Is that correct? thanks
 
J

JRDtechdotnet

Thanks Chris.
My problem is I don't carry inventory and all my purchases are a per job
basis, I hardly ever order the same item twice. If I were to create a new
item for everything my drop down menu would be 1000 entries long. When I
first started I used to create non-inventory items put in the sale price and
item name/descrp and check 'I buy this item' select the expense account and
type the amount I paid. After that I figured hey its going into an expense
account anyways why can't I go to the vendors tab, select record expenses,
select my parts expense account and type in what I paid and totally bypass
the item creation, I simply note what the purchase was for in the description
section. I'm just looking for assurance that OK to do that. IF not how do I
avoid a bizillion of items I'll never use again. I don't care about tracking
profitablity from materials
 
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W

William Stacey [C# MVP]

Just create a "Widget" item and use that single item for everything. Change
the desc and price on the line item when you create invoice.
W
 

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