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QuickBooks financial FAQ – Tracking Expenses on an Inventory Item

Question:  

We sell lawnmowers and sometimes there are recalls on certain areas on the lawnmower that require both labor and inventory items to repair before we sell. How do I track these expenses?

Answer:

This is not a natural feature of QuickBooks.  However, I have my clients run the labor through an other current asset called WIP (Work in Progress).  Then we adjust value of the inventory based on our WIP balance.  So the inventory goes up and the WIP goes to zero.

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