reclass account type
Hi ,
Can we re-class Expense account to Cost of Sales account? We have multiple Financial Years closed
Thank you,
Forum Discussion
Hi Nincha,
If an account is already set as an expense account, you can't change it to another type of account directly. It's best to create a new account with the desired type and then inactivate the old account. For proper handling of values from previous financial years, it's advisable to consult an accountant.
Feel free to create a new thread if you need any other help.
Thanks,
GenreveThank you Genreve,
Yes we consulted the accountant, and we would like to keep this account as it has historical records, however, it was mistakenly set up initially as an expense when in reality it is actually our cost of sales. Is there nothing we can do to re-class it as Cost of Sales?
Thank you,
Kind regards,
Nina
The Profit and GST is the same whether an Expense is recorded as Cost of Sales or as an Expense.
There is a box for Cost of Sales on the Company Tax Return.
The ATO also uses Benchmarks to compare the Gross Profit Margin of a Business to the industry norm.
One does wonder why the Accountant wishes to adjust MYOB historically.
Duncan Smith
