• Registered: 06/23/2008
  • Posts: 6

Topic: Bypassing inventory / cost of goods data

Hello,

I have a consulting business where my accounting results only need to reflect the formula > consulting fees - operational expenses = net income. However, when I try to record my fee (sales) income, the script warns me that I should set up inventory products & prices.

Since I'm the only one that handles this consulting and the fee is dictated by open market and tradition, I do not need to subcontract consulting - thus I don't pay costs of services and the sum of all consulting fees becomes the gross income of my activity.

I wonder if I should create in order to trick the script a product with price = 0 ; however, I would still have to deal with the N° of units, since most probably the script would prevent me to sell something I haven't got in stock.

My question then would be how should I go about setting up this scenario.

Thanks !!

Gus Collot

  • From: USA
  • Registered: 11/05/2008
  • Posts: 20

Re: Bypassing inventory / cost of goods data

Create an item or service with zero price and service category . When you create a direct invoice, then you enter the invoice or bill amount. I hope this help.

Help others to help yourself as no one knows it all

techman's Website

  • Registered: 06/23/2008
  • Posts: 6

Re: Bypassing inventory / cost of goods data

Thanks...I only have a question...

When I get a contract, I get 50% advance, the remaunder to be paid upon service completion. Thus, my posting should reflect :

Accounts Receivable 50.00
Cash                       50.00
    Consulting Income          100.00

You got me lost on your "direct invoice" comment...since I'm starting to learn the program, please help me clear this up.

Thanks again,

Gus Collot

  • From: USA
  • Registered: 11/05/2008
  • Posts: 20

Re: Bypassing inventory / cost of goods data

You are doing the right thing but sometimes, customers wants a copy of the invoice and you can easily track your services+AR by using the partial inventory system.

Help others to help yourself as no one knows it all

techman's Website