QB Issue Resolution:
Create an Asset account for “Used Cars” and book the vehicle purchases here (Balance Sheet).
The “reconditioning costs” of the vehicle are a “Cost of Goods Sold” Expense. You can create a sub-account to cost of goods sold specifically for these costs such as “Reconditioning – Used Cars”. You can also create a “Cost of Services Sold” account for your actual “Used Car Retail Sales” (fees related to buying the used car) expenses. If the vehicle is put into physical inventory (still an asset) and it declines in value month-over-month it should be written down to the current fair market value.
Resolution for Issue 'We are a used car dealership new to using quick books online. I want to account for buying cars from the auction in my banking section of quickbooks. How should I categorize this?' available: Yes (Solved).
Source: Intuit Community forum.
We are a used car dealership new to using quick books online. I want to account for buying cars from the auction in my banking section of quickbooks. How should I categorize this?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for Balance Sheet
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Error Recovery for Balance Sheet [Canada]
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