1) May I know are COST OF GOODS and EXPENSES connected?

Forum|Forum|5 years ago
April 25, 2021
1 reply
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QuickBooks Online - International

Adrian_A

Level 8

Yes. They are related, masliaintanenterprise.

The Cost of Good Sold refers to the cost of producing an item or service sold by a company. That being said, you will record the cost of goods sold as a business expense on your income statement.

I've added this article that has detailed information about COGS: Cost of goods sold: How to calculate and record COGS.

I'm just around if ever you have other concerns. Have a good day!

masliaintanenterpriseAuthor

Hi,

I am confused as I am currently using Storehub POS and in the “expenses” for the “cost of sales” was automatically calculated as the data comes from storehub.

Where do I put the payment to supplier for all the “cost of sales” ?

Eg :

supplier bill - Rm1000

i add inventory from supplier using storehub. and this includes cost for each of the inventory.

sales & cos = automatically calculated and synchronized when transaction happened and this data will be sent to QB.

If I add payment to supplier, will this makes the expenses become double?

Thank you

lin_jcaj

Level 9

Thanks for getting back to us, masliaintanenterprise. I'm here to share additional information about COGS in QBO.

This will not double the expenses. COGS is affected only when you sell the items. This account isn’t meant for the items you use to create your products, such as raw materials. If the items you bought are used to run your business or part of your inventory cost, you can record them as expenses.

However, for those you buy and resell, you can directly add them to your product and service list.

For more insights, you can refer to this article: Setting up Inventory in QuickBooks Online.

Drop a comment below if you need anything else. I'll be here to help.

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