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.

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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