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Buy nowThe sale of an Inventory Item results in Three Lines:
Asset (inventory goes Down by the Cost Basis on hand
COGS goes Up by that same amount
Sales is seen for the Gross sale.
That would be three $1 lines in the attached image. They are not bracketed properly for what actually happened.
Then, Noninventory is never carrying a Cost in the sales transaction. That is only the Sales amount. The Cost amount is from any Purchase you entered where you used that same Two Sided item, so that you can relate that same Noninventory item from its own purchase (and Job Tracked to that customer, if that was a direct and specific purchase just for their sale) and then the Sale of it gives the income and the ability to see Profit for that Service, Noninventory or Other Charge type of activity. The profitability of the inventory item on sale is revealed in the sale journal. The others are Not seen here; they are only showing Sales Revenue as the gross.
And this only works if you are using a QB program that allows you to make the Service, Noninventory and Other Charges as Two Sided and you specifically show you both Buy and Sell this, so that there is the Expense account link and the Income (or reimbursement income) account link = Two Sides.