Item List: How important is it to be sure ALL parts purchased are entered into the item list (for auto repair biz with no inventory)? How does it affect the bottom line at tax time?
You don't need to do anything more than enter the purchase as an expense or as COGS. You spent money and bought something that is used in the course of business. It reduces your reportable income, so this is the most important step.
If you want to use Items for good reporting, then you can simply name one "Stuff I sold you." But you don't always sell the parts; you might only have used the parts on the job.
So, Items reports provide a way for you to track and report and compare, for instance:
Fuel Pump Vs Alternator
Purchases Vs sales
qty and profitability data
previous purchases prices and sales prices
If none of that matters, then you don't need to use Items at all.
We are a carpentry business, also keep no inventory but have COGS.
I invoice our customer for the materials to be reimbures, and when the ivoice is paid, the money shows back to the COGS account.
Then when I run a profit loss report, it shows that we have a gross profit with no COGS. This is not accurate: Say we spent 6K on a job, plus labor, billed the customer for 10K. After I enter the reimbursed expenses, the report shows we had no COGS, but grossed 16K.
How do I get it to show 4K profit, 6KCOGS?
zelda, let's continue this on your own topic:
http://community.intuit.com/posts/no-inventory-but-cost-of-goods-sold
