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Cost of Sales in Profit & Loss Statement

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Jackie5
4 Posts
Cover User
Australia
Solved: Go to Solution

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?

Thanks,

Jackie

3 REPLIES
Valued Partner Jennifer_Kelly
261 Posts
Valued Partner
Australia
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
www.BI4Cloud.com
Jackie5
4 Posts
Cover User
Australia

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.

Partner thatbookkeeper
3 Posts
Partner
Australia

Re: Cost of Sales in Profit & Loss Statement

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

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