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Level 1
posted Jun 3, 2019 11:30:15 AM

When do I declare product expenses paid for in 2018 but not delivered until 2019?

I started a wine import distribution company and paid for wine inn 2018.  
The wine was not delivered until January 2019.

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1 Best answer
Expert Alumni
Jun 3, 2019 11:30:16 AM

You can record the payment made in 2018 as an expense under Purchases. At the year end, you add the amount paid to your closing inventory as the undelivered goods are considered as inventory in transit.

1 Replies
Expert Alumni
Jun 3, 2019 11:30:16 AM

You can record the payment made in 2018 as an expense under Purchases. At the year end, you add the amount paid to your closing inventory as the undelivered goods are considered as inventory in transit.