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November 29, 2018
Question

Do I categorize payments made to Consignees for products sold as COGS?

  • November 29, 2018
  • 1 reply
  • 45 views
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1 reply

Rustler
Level 15
November 30, 2018

If someone is placing items with you for sales on consignment, the amount you pay them is NOT cogs, it is an expense, consignor expense is the account I set up and use.

 

COGS deals with inventory, which by definition is what you own to sell, items placed with you on consignment are not owned by you.