Cost of Sales in Profit & Loss Statement

4 Posts
Cover User
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Cost of Sales in Profit & Loss Statement

We have AccountRightv19. I did a Profit & Loss Statement and had cause to query the amount showing in Cost of Sales. Upon checking I found that this amount is the cost of sales of the items that we've sold and not the invoiced purchase amount from the Supplier. I need this report to show the purchase amount, is there any way around this?



Super Partner Jennifer_Kelly
294 Posts
Super Partner
Accepted Solution Solved Solution

Re: Cost of Sales in Profit & Loss Statement

Hi @Jackie5


It sounds like you are selling Inventory Items?


When you setup Items as "I Inventory" the accouting for purchases will post all Item purchases to the Inventory Asset account in the Balance Sheet, then when you sell the Item it deducts the cost from Inventory and only then posts it to the Cost of Sales Expense account. This way the cost of sales correctly only includes the costs associated with items that have actually been sold. Anything not sold is still an asset, sitting in inventory, waiting to be sold at a future date.


If you setup Items and do not tick "I Inventory" then when you purchase this item the cost will post directly to whatever expense account you have setup for that item.


I hope that helps 


Jennifer Kelly CA
BI4Cloud- powered by Interactive Reporting
02 8011 1511
4 Posts
Cover User

Re: Cost of Sales in Profit & Loss Statement

Thank you for that. We do sell inventory items and also export from Retail Manager, so this has cleared things up.

Contributing Partner thatbookkeeper
5 Posts
Contributing Partner

Re: Cost of Sales in Profit & Loss Statement

how does myob work out the cost of sales amount on an inventory item

MYOB Moderator Neil_M
4,733 Posts
MYOB Moderator
New Zealand

Re: Cost of Sales in Profit & Loss Statement

Hi @thatbookkeeper

Welcome to the MYOB Community Forum, I hope you find it a wealth of useful information.


AccountRight is designed to use the average cost method to determine the on hand value of the inventory items. When one of those items is sold, it draws on the average cost of that item at that point in time to determine the cost of sale of that item in that transaction.


Please do feel free to post any other questions that you may have.

Kind regards,
MYOB Client Support
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