Inventory Quotes - COS or Asset Account
Hi, Accounts used: 5-0501 Cost of Goods Sold - Inventory (Profit & Loss) 1-1801 Inventory 2 (Balance Sheet) We have a client who create quotes (adding a job to it). He uses a COGS account ...
Forum Discussion
I understand your client's situation. They are creating quotes and adding jobs to them, using a Cost of Goods Sold (COGS) account (5-0501). However, this is causing the stock to go through the profit and loss, which should not happen until the goods are sold. With this, I highly recommend speaking to your accountant or financial advisor as they can provide you with more information. If you encounter issues in the future, feel free to create a post again.
Best regards,
Doreen
