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Post Info TOPIC: Entry on ledger
pbr


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Entry on ledger
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Hi every one good morning 

My client working as a building maintenance and when he purchase the material will it be a cost of sale or will it be other cost?

Please help me to find correct ledger to allocate purchase on Quick book, will be very appreciate.

Thank you 

Minaxi

 

  

 



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msavania
Cheshire


Master Book-keeper

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Hi Minaxi
Can you clarify what the job is and what he is purchasing. When you say 'as a' building maintenance, do you mean he is a cleaner?

With the information you have, what is your gut feeling for the item?

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
pbr


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Hi yes he is repairing replacing bathrooms,kitchen,garden etc

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msavania
Cheshire


Master Book-keeper

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You havent really answered all my Qs.

If he buys a tap for installing a bathroom - its a direct cost.

Does he work for other businesses/companies? If so dont forget CIS.

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
pbr


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Hi Thank you for your help, and he buys the material to use direct for the job he quoted for his customer as a plastering wall buys plaster board and other material to finishing then he will charge for material and labour on an invoice
and other question for creating an invoice on quickbooks will it be allocate on sales of service or can be use different Ledger sorry i am asking to much.
Thank you all
Minaxi

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msavania
abacus12345


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As mentioned above -

Depends on trade, one man's asset, is another man's COGS.

Main difference as I'm sure you know is the tax treatment - Will it ultimately be capital expenditure or revenue expenditure.

If a landlord rents houses (as they do :) ) A purchase of a new window to him is capital (Ok there are exemptions, replaced for a like for like etc..)

Should a builder replace a window, to him it is revenue expenditure.



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Cheshire


Master Book-keeper

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pbr wrote:

Hi Thank you for your help, and he buys the material to use direct for the job he quoted for his customer as a plastering wall buys plaster board and other material to finishing then he will charge for material and labour on an invoice
and other question for creating an invoice on quickbooks will it be allocate on sales of service or can be use different Ledger sorry i am asking to much.
Thank you all
Minaxi

 I dont use QB so cant specifically advise.  Do you have to set up product codes?  Can you set them as 'non stock' items, if so I would do that and maybe have one for 'Labour' 

Or just use the service invoice option and quote for the whole job.  Depends what he wants to issue to customers.

Or - just keep the invoicing away from QB and do them manually or via some other software.



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
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