How do I include PST in the cost of a COGS item when adding the item to an invoice?

Question

How do I include PST in the cost of a COGS item when adding the item to an invoice?

We charge a 30% markup on materials on our construction jobs. Right now QuickBooks desktop is bringing over the net cost of items I add to invoices. It should be net+PST to cover our actual costs. I'm using items for COGS, but the items don't have standard prices (an example is "lumber" as an item - the cost varies every time). We pay GST and PST and we charge GST only.

Perhaps the answer is to enter COGS as expenses and not as items.

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2 comments

This answer above is not correct. PST in BC is an end user tax and if paid becomes part of the COGS. When invoicing out for that item on which PST was paid the cost will reflect the cost plus PST. Using non inventory part items will result in this cost being reflected on the P&L and when invoicing out these items the Gst will be charged on cost plus pst plus markup.

Eileen Reppenhagen

[mention://14953008 [mention://14953008 @IntuitRea]] you didn't answer my actual question.

[mention://624034 [mention://624034 @Eileen Reppenhagen]] Unfortunately that's not what I'm seeing. On my invoices the cost on invoices is net of PST (that's why I posted this question). I believe it's because items are intended to have defined cost and sale prices. I leave those defaults at zero and change them when inputting bills because there is no standard cost of items in our business.

If I enter COGS as expenses instead of items then the cost on invoices is cost plus PST, which is what I want to see. Unfortunately using expenses doesn't allow me to track sales by item unless I do it using accounts which seems... crazy! Does that make sense? Any ideas?

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Answer 1

Answer

Hello there, info,

Taxes are recorded separately to sales and they'll not be included in the Profit & Loss report. COGS is recorded in the P&L (Accrual) report from your invoice and the taxes will still be recorded to your sales tax payable (Liability).

Entering COGS as check with item will let you show the total paid amount based on the expense you created. However, you have to set the P&L to Cash basis, then the amounts will be reported based on the payment date.

For further reference, you can check out this article: Understand Inventory Assets and COGS Tracking.

Please let me know if you have other questions about recording COGS in QuickBooks Desktop. I'm just around if you need help.

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IntuitRea , Community Support Specialist

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Answer 2

How do I include PST in the cost of a COGS item when adding the item to an invoice?

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