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fiona12345's avatar
fiona12345
Contributing User
6 years ago
Solved

Cost of Sales Account

When I look at the general ledger account for a date range for our cost of sales account it lists purchases and it also lists sales, both on the debit side. Is this correct? Is it something to to with some items being bought and inventoried and other's not. Just seems strange to me to see sales listed in the cogs account.

  • AmandaCL's avatar
    AmandaCL
    9 days ago

    Hey Busygirlange 

    I've just tested it from my end, I'm using Google Chrome as my web browser and am not running into an issue. Have you tried any other web browsers, does the same issue happen on each one? Let me know how you go!

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    6 years ago
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    Hi fiona12345 

     

    Thanks for your post. You're correct that the reason for this involves inventory. When you set up an item and select I Inventory This Item you then link the applicable Cost of Sales Account. So when the item is sold the cost of sale account is debited and the inventory account credited as part of the sale transaction.

     

    If you're unsure which accounts are affected when you record a transaction, open the transaction and then Crtl + R on your keyboard. This opens the Recap Transaction window which shows the journal entry for that transaction. This example is for an item sale

     

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to help other users find this information.

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When I look at the general ledger account for a date range for our cost of sales account it lists purchases and it also lists sales, both on the debit side. Is this correct? Is it something to to with some items being bought and inventoried and other's not. Just seems strange to me to see sales listed in the cogs account.

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When I look at the general ledger account for a date range for our cost of sales account it lists purchases and it also lists sales, both on the debit side. Is this correct? Is it something to to with some items being bought and inventoried and other's not. Just seems strange to me to see sales listed in the cogs account.

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Cost of Sales Account","moderationData":{"__ref":"ModerationData:moderation_data:629362"},"body":"

Hi fiona12345 

\n

 

\n

Thanks for your post. You're correct that the reason for this involves inventory. When you set up an item and select I Inventory This Item you then link the applicable Cost of Sales Account. So when the item is sold the cost of sale account is debited and the inventory account credited as part of the sale transaction.

\n

 

\n

If you're unsure which accounts are affected when you record a transaction, open the transaction and then Crtl + R on your keyboard. This opens the Recap Transaction window which shows the journal entry for that transaction. This example is for an item sale

\n

 

\n

\n

 

\n

Please let me know if you need further help.

\n

 

\n

If my response has answered your enquiry please click \"Accept as Solution\" to help other users find this information.

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Hi  

\n

 

\n

Thanks for your post. You're correct that the reason for this involves inventory. When you set up an item and select I Inventory This Item you then link the applicable Cost of Sales Account. So when the item is sold the cost of sale account is debited and the inventory account credited as part of the sale transaction.

\n

 

\n

If you're unsure which accounts are affected when you record a transaction, open the transaction and then Crtl + R on your keyboard. This opens the Recap Transaction window which shows the journal entry for that transaction. This example is for an item sale

\n

 

\n

\n

 

\n

Please let me know if you need further help.

\n

 

\n

If my response has answered your enquiry please click \"Accept as Solution\" to help other users find this information.

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