A question that we get quite a bit is how to track items that we pull out of inventory to use. It really depends on your sales tax codes. There are 2 ways to do this. The first way is to do a qty adjustment and then when it gets posted to QBF, change the journal entry that was created to shop supplies. You will have track the amount taken and usually pay some sort of use tax. The easier solution if allowed is to sell the item to yourself at cost (collecting the tax) and use the payment on account. In QBF, discount the invoice to your supplies expense. With this method, no need to track use tax as you collected the tax when you sold it to yourself.
