Drop ship items are a problem.


L

Lightfoottoo

Drop ship items are a problem.

1st time user QB 2005 Retail.

Purchased "QB for Dummies 2005" & "Running QB 2005 Premier Retail Edition"
and neither addresses the problem I'm having.

PROBLEM:

When we set up QB we entered our drop ship items as non-inventory and
assigned the items to Sales: merchandise on the income side.

When the customer purchases that item I need to enter a sales receipt and a
purchase order for that item. The manufacturer then charges our credit card
and drop ships the item to the customer.

No problem making the sales receipt but when I try to make the purchase
order, QB tells me that the item is associated with an income account and
lists the item at retail price, the same as the sales receipt.

QUESTIONS

1. How do I associate the same drop ship item with both an income and an
expense account so the right prices and accounts types can be assigned when
filling out sales receipts & purchase orders?

2. Should items that are drop shipped from another company be entered as
something other than a non-inventory item?

3. Do I need to enter the item twice and assign them to diff accounts? (QB
won't allow the same name in the item list so I would have to change
something in the name which will create accounting problems since it will
think they are 2 different items)

Any guidance would be greatly appreciated.

Linda
 
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M

Mike Block-Tax Cut CPA

Simply overwrite the amount in the amount in the 'Cost' column. In
the Profit & Loss report the net gain pertaining to this transaction
will be shown instead of Sales and Purchases coming differently.
However if you want the goods sold and goods purchased to be shown
separately then the item will have to be created as 'Inventory
Part'.



Mike Block - QuickBooks Tax Cut C.P.A.
Intuit paid me to make QuickBooks better!
http://www.blocktax.com/
http://www.quickbooks-add-ons.com/
 
?

!-!

To associate an Item with both an income and expense (or COGS)
account -
Edit the item, select the option "This item is purchased for and sold
to a specific customer".
 
L

Lightfoottoo

Thank You! !-!
You were 100% correct. When I checked that box additional boxes magically
appeared allowing me to enter both the cost and the retail prices. I was
able to do exactly what I wanted. When I filled out a purchase order it
listed the item at cost and when I made the sale receipt it listed the item
at the retail price.

As a bonus, when I entered my credit card charges QB knew that some of them
should be charged to the open purchase orders and cleared them at the same
time. Fantastic!!

Thanks Again!!

Linda
 
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?

!-!

You're welcome. The description for that option is not very helpful.
 

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