[GNC] Another "multi-account" logical issue - any advice on how to register this?

[Patrick James]

One question you're asking is about the cost of goods sold (COGS), and how to determine what's included and excluded. There are two directions of freight, inbound and outbound. In the US inbound freight is generally included in the COGS and outbound freight (to the customer) is a cost of sales (monthly expense, never included in the inventory).

Also it's time to mention that there are different systems of inventory (FIFO/LIFO/Specific lot/average cost).


> On 09/30/2024 9:47 AM PDT Boniforti Flavio <boniforti.f at gmail.com> wrote:
> 
>  
> Hi all.
> I'm again stuck with a specific type of transaction and would like to have
> it validated (or corrected). Suggestions on how you would do it are welcome
> as well - I might not be using the most intuitive way of registering it.
> 
> So...
> 
> I bought an item for 300. Paid for it from my checking account.
> I paid for shipping separately 10. Paid for this as well from my checking
> account.
> Sold the item for 320, which was wire-transferred into my checking account.
> I have earned 10 from the transaction.
> 
> I have created an account for that item:
> Assets:Material:Item #1
> Also, I've added a shipping sub-account to it:
> Assets:Material:Item #1:Shipping
> 
> Then I entered the split transaction as follows:
> 
> PURCHASE =
> Increase "Assets:Material:Item #1" of 300.
> Increase "Assets:Material:Item #1:Shipping" of 10.
> Decrease "Checking account" by 300.
> Decrease "Checking account" by 10.
> As I also have an account for "Postage expenses", how would I have to
> register the 10 bucks I spent for shipping, so that it also accounts
> towards the postage expenses in general?
> 
> SALE =
> Increase "Checking account" by 320.
> Decrease "Assets:Material:Item #1:Shipping" by 10.
> Decrease "Assets:Material:Item #1" by 300.
> Increase "Sales Surplus" by 10.
> 
> Thanks (again) for your help!
> F.
> 
> https://www.instagram.com/boniforti_music
> https://soundcloud.com/boniforti_music
> https://bonny-j.bandcamp.com
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