[VaSteve]

Don't know if "taking orders" means taking money or not...I will assume it doesn't for this example.

Jan/Feb Receipt of Goods

Dr. Merch for sale (some asset account)
Cr. A/P (to supplier) or Cash



Jan/Feb Sales to Customer

Dr. A/R (from customer) or Cash
Cr. Revenue
Dr. Cost of Goods Sold (expense)
Cr. Merch for Sale


The above example "capitalizes" the goods until they are sold. You want to match your expenses with the revenue they helped produce.


Shaun, didn't we talk years ago about you setting up quickbooks? Back then you were trying to make it too complicated.