invoice, cost of goods sold, process payment question

David Harrison davidharrisoncga at gmail.com
Thu Mar 24 12:48:53 EST 2005


On Wed, 23 Mar 2005 15:39:50 -0600, John Griessen <john_g at cibolo.com> wrote:
> Hi,
> 
> How do I connect cost of goods sold to an inventory item sold
> on an invoice line?   Choices in creating the invoice seem to be
> income accounts called assets:inventory  and sales:services and then at the end
> is just the heading Liabilities with no detail and no Expenses which has COGS in it.
> 
> Is there a way to add to the choices available in the invoice creation, or is
> there another way to use COGS?
> 
> John Griessen

If I understand correctly, you want the underlying journal entries to
look something like this:

Asset: Accounts receivable         x,xxx.xx
Expense: COGS                           xxx.xx
     Income:Revenue                                     x,xxx.xx
     Asset: Inventory                                        xxx.xx

As far as I know, you cannot do this from the invoice screen.

Here are a couple of options:

1. Make a seperate entry to transfer the cost from inventory to COGS
(seperate from the invoice).

2. Post all your materials purchases directly to COGS.  At the end of
a period (month, year, other?) do an entry to adjust your ending
inventory to actual.  So if your inventory is higher at the end of the
period than it was at the end of the last period, debit inventory and
credit COGS.  If the inventory has decreased, do the opposite.

-- 
David Harrison, BAccS, CGA


More information about the gnucash-user mailing list