Proper way to record business invoice from wholesaler

spartan2381

I just started using Quicken Home and Business and like it so far. One of the questions I have is when I purchase something from my wholesaler for a customer and the transaction shows up in my checking account how should that be recorded? Do I record as a bill or just create a category for that wholesaler under business expanse? Below is the workflow to help give more detail:

1. Customer wants to buy a item
2. Estimate is created and sent (with markup on price)
3. Customer approves estimate
4. Estimate is converted to invoice
5. Order is placed with wholesaler (via terms, ACH, credit card, etc)
6. Transaction is downloaded from business checking account
7. How do I reflect above transaction??
8. Customer pays invoice and is marked as such
9. Funds are deposited into checking account and recorded as business income

UKR

spartan2381 said:

...
When creating an estimate or invoice for a customer should the "Category" being selected be "Sales (Business) or [Customer Invoices]?

In each line item of a Vendor Invoice, for items purchased for resale, the Category should be one that's associated with a Schedule C line item of the Cost of Goods - type, e.g., "Purchases, Cost of Goods (COGS)".

When selling the purchased item to your customer, the category in the Customer Invoice's line item should be something like "Schedule C: Gross Receipts or Sales"

If a suitable category does not exist, create one.

Discuss proper categories to use with your business income or expense transactions with your tax advisor.

UKR

To record the invoice with the wholesaler you can use the Vendor Invoices aka Accounts Payables account.
Ditto for paying the vendor. If the invoice is charged to a credit card account or automatically debited from your business checking account, mark the vendor invoice as paid when you are finished creating it.
The next time you download transactions from your bank check to make sure that the downloaded transaction is matched properly to the correct register entry.

You can read more about this process in Quicken Help in the book Manage your business. To access Quicken Help press the F1 key from anywhere in Quicken.

spartan2381

@UKR - Thank you. I created a accounts payable and receivable options. It know shows on the left hand side:

Invoices
Customer Invoices
Vendor Invoices
Sales Tax

When creating an estimate or invoice for a customer should the "Category" being selected be "Sales (Business) or [Customer Invoices]?

UKR

spartan2381 said:

...
When creating an estimate or invoice for a customer should the "Category" being selected be "Sales (Business) or [Customer Invoices]?

In each line item of a Vendor Invoice, for items purchased for resale, the Category should be one that's associated with a Schedule C line item of the Cost of Goods - type, e.g., "Purchases, Cost of Goods (COGS)".

When selling the purchased item to your customer, the category in the Customer Invoice's line item should be something like "Schedule C: Gross Receipts or Sales"

If a suitable category does not exist, create one.

Discuss proper categories to use with your business income or expense transactions with your tax advisor.