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Posted by Crabshell on April 15, 2008, 10:30 am
Please log in for more thread options Thanks. I think it's time to get a CPA...
> If you are going to use COGS, match up the costs with the revenue. In
> other words, if you invoice a customer in one month, be sure to record
> your vendor bill for that customer in that same month.
>
> COGS is just that - cost of goods *sold.* If you haven't sold
> something for that cost within the same accounting period, then don't
> track it as COGS, track it as an expense.
>
> It's important to match up the costs with the revenue, because it
> ensures that the gross margin will be accurate. And the whole reason
> for COGS is to get an accurate gross margin. My opinion is to only use
> COGS if an accurate gross margin is important to your business
> management.
>
> This is because posting to COGS from the Expenses tab, while assigning
> a customer:job, causes problems. Here's something I wrote that
> explains what happens when people do this. It's a list of things I
> wish were different about QB, so after clicking the link, scroll down
> to #7:
>
> http://www.jenniferthieme.com/quickbooks-help-wish-list.html
>
> Jennifer
> http://www.jenniferthieme.com
>
> Signup for my QB Ezine:
> http://www.jenniferthieme.com/quickbooks-help-free-ezine.html
>
>
>
>> I'm a web developer who has to subcontract on occasion. Since I'm
>> basically reselling what my subcontractors produce (a web site in
>> this case), is that expense considered a cost of goods sold or is it
>> a standard expense?
>>
>> Thanks for any advice.
>
>
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