Create a Non-Inventory Part in QuickBooks accounting software
Software: QuickBooks accounting software
You can classify an item in QuickBooks as a Service, Inventory or Non-Inventory type.
When an inventory item is purchased, QuickBooks will debit the Inventory Asset account and credit the Accounts Payable. Only when the item is sold, QuickBooks will then debit the Cost of Goods Sold account and credit the Inventory Asset account with the average cost.
A non-inventory part item is an item, which you usually buy and sell for a project or a specific customer. For example, you may buy a few containers of goods for a specific customer. Since the goods will be delivered immediately once it is arrived, you may track it as a non-inventory part instead of an inventory part.
When recording the bill of a non-inventory part, unlike an inventory part item, QuickBooks will debit the “Expense” account directly and credit the Accounts Payable account. You should consult your accountant whether an Expense or Cost of Goods Sold account type to be used for the item, as this may affect the presentation of the Profit & Loss report.