COGS question

[Boyd Kelly (Coast Systems)]

Sounds reasonable.  What really prompted my question, (as I am in the proce=
ss of switching my rather simple accounting needs to gnucash), is that in Q=
B the COGS account is listed as type 'Cost of goods sold', as if it is a di=
fferent beast than anything else.  Do you think that this will have any rep=
orting consequences?=20

Thanks,

Boyd



-----Original Message-----
From: Dale Alspach [mailto:alspach@math.okstate.edu]
Sent: January 13, 2003 15:02
To: Boyd Kelly (Coast Systems)
Cc: gnucash-user@lists.gnucash.org
Subject: Re: COGS question=20


COGS is an expense. Generally the sale of an item for $100 that costs
(wholesale) $50 results in transactions such as

Sales of Inventory (income) credit $100
Operating Account (asset) debit $100
Inventory (asset) credit $50
COGS (expense) debit $50

I am not an accountant but this is the effect on the general ledger in
QuickBooks Pro of a sale from inventory. Most of this is hidden because the=
se
sales are generally made by using an invoice in QuickBooks Pro. Thus
everything is a side-effect of the setup of items for sale.

Dale Alspach