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Thank you both for your replies.
I should have stated originally that owner is a sole proprietor, company is an LLC.
We are fine on all other bookkeeping, it is just that I am new to items. Owner orders items using bulk amounts for best wholesale pricing, we receive items & enter into stock, but do not add a sell rate as selling prices vary.
Owner then removes some of the items for their personal use. We need to show the lowered quantity & our state tax entity gave a ruling that these items are taxed at original cost, not value, for use tax.
My dilemma is how to show the items removed, I understand if we were discarding items it is at value but these are for owner use.
And when I try to adjust using "Adjust Quantity/Value on Hand > Adjustment Type > Quantity & Total Value" the quantity part works but not the value - this needs to be actual cost.
I do use the owner draw account for the "Adjustment Account" in the Adjust Quantity/Value on Hand screen.
Rustler, I understand the idea of a bill, but the owner is also paying the use tax thru the company so I need to show that as part of owner draw. Would a GJE entry accomplish the same thing using owner draw/debit<>tax liability/credit?
So I am looking for the entries that show lowered quantity, correct value to owner draw, and sales tax liability. And I keep thinking there should be a simple answer!
Thank you again!
I should have stated originally that owner is a sole proprietor, company is an LLC.
We are fine on all other bookkeeping, it is just that I am new to items. Owner orders items using bulk amounts for best wholesale pricing, we receive items & enter into stock, but do not add a sell rate as selling prices vary.
Owner then removes some of the items for their personal use. We need to show the lowered quantity & our state tax entity gave a ruling that these items are taxed at original cost, not value, for use tax.
My dilemma is how to show the items removed, I understand if we were discarding items it is at value but these are for owner use.
And when I try to adjust using "Adjust Quantity/Value on Hand > Adjustment Type > Quantity & Total Value" the quantity part works but not the value - this needs to be actual cost.
I do use the owner draw account for the "Adjustment Account" in the Adjust Quantity/Value on Hand screen.
Rustler, I understand the idea of a bill, but the owner is also paying the use tax thru the company so I need to show that as part of owner draw. Would a GJE entry accomplish the same thing using owner draw/debit<>tax liability/credit?
So I am looking for the entries that show lowered quantity, correct value to owner draw, and sales tax liability. And I keep thinking there should be a simple answer!
Thank you again!