Where to put in an expense (item) for re-sale?

SortITSortIT Member Posts: 21

As an example,
I work in IT. I purchase a piece of hardware for 100. I want to re-sell for 110.

I thought I would put the purchase of this hardware under 'Bills'. I go to Bills, but when I choose 'Expense Category', there is no option of the 'Cost of Goods' (which is where I thought it would go under) - (I have created a 'Hardware' under the Cost of Goods in Accounting)

I do see the option under 'Expenses' - "Hardware" - however, does under 'Expenses' mean internal expenses of the day to day running of the business (ie. hardware for my own business, rather than resale).

I also note that under 'Expense Category', there is the head 'INCOME', for which I have created an account 'Sales' - Would it go under that, as it's an expense related to my sales?

As you can see i'm highly confused in this regard.

Many thanks.

Comments

  • SortITSortIT Member Posts: 21

    Anyone? Thought this would be a very common thing!

  • Ryan_WRyan_W Administrator Posts: 460 admin

    Hi @SortIT,

    Don't worry; this is a common thing! You can create Expense categories for your Purchases to track your Cost of Goods Sold by clicking the Accounting tab along the left side menu > Add an Account > Expense > Cost of Goods Sold. As for re-selling, you would enter these items as products by navigating to Sales > Products & Services > Add a Product/Service. When creating an invoice, you would use the 'Products' created which would be at the marked up price. At any point in time, you would be able to generate an Income Statement (Reports > Income Statement > Select Date Range) to track your income and expenses generated.

    You may also want to check out this article regarding inventory tracking in Wave: https://support.waveapps.com/hc/en-us/articles/208623546-Simple-inventory-entry-tracking-in-Wave

    I hope that clears it up!

  • SortITSortIT Member Posts: 21

    @Ryan_W - Thanks for your reply.

    I am almost there... I think!

    Speaking of the same item I purchased (for re-sale), does this go under 'Purchases => Bills', or under 'Accounting => Transactions => Add Manual Transactions => Add Expense"

    I would have taken a wild guess that it would go under the 2nd option (Accounting), but when I try to add an expense here, under 'Category', there is no 'Cost of Goods' header, only options that are there are ones which are listed under the 'Operating Expenses'

    I basically don't know where to put this item-for-resale as an expense, because under no option above can I add the item to my 'Cost of Goods (Hardware)' Expense Category

  • SortITSortIT Member Posts: 21

    @Ryan_W just to give you a real world example....

    We do NOT keep stock of items, nor do we make them from raw materials.

    A practical example...
    1) Customer requires a router, which will cost me 100
    2) I order the router and want to log it an expense to the business (So does this go under 'Operating Expenses', or under 'Cost of Goods Sold'?)
    3) The router arrives, I fit it (labour 70) and charge the customer 110 for the item, and Invoice as such once the job is complete.

    There is no stock / assets / Inventory worry here, as we are not talking big volumes and I only ever order-to-spec

  • SortITSortIT Member Posts: 21

    I figured it out and totally my fault... When I enter a 'Bill' or 'Manual Expense', under the "Expense Catagory", I was expecting sub-headings such as 'Cost of Goods Sold', whereas Wave just puts in ALL the expense accounts under the one menu.

    So, I just need to re-name my "Cost of Goods Sold => Hardware" to "CostOfGoods-Hardware", so I know which account it's going into (Or something like "Hardware-Resale" etc...

    Hopefully that's it figured out!

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