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What is the difference between cost of sales and cost of goods sold and which should I use to track stock?

 
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Best answer 06-05-2019

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QuickBooks Team

Re: What is the difference between cost of sales and cost of goods sold and which should I use to...

Welcome to the Community, @elizabeth11.


There is almost no difference between the two. The terms are typically used interchangeably in accounting.


The Cost of Sales and Cost of Goods sold both tracks how much it costs a business to produce a good or service to customers. The latter represents those goods that were taken off of the Balance Sheet as inventory and expensed as Goods Sold. Other expenses such as shipping of the product can be considered a Cost of Sale.


I recommend consulting your accountant for help in selecting which to use in tracking stocks. For reference, check out these articles: 

That should answer your concern for today.


Let me know if you need anything else. I’m always here to keep helping. Take care!

View solution in original post

2 REPLIES 2
QuickBooks Team

Re: What is the difference between cost of sales and cost of goods sold and which should I use to...

Welcome to the Community, @elizabeth11.


There is almost no difference between the two. The terms are typically used interchangeably in accounting.


The Cost of Sales and Cost of Goods sold both tracks how much it costs a business to produce a good or service to customers. The latter represents those goods that were taken off of the Balance Sheet as inventory and expensed as Goods Sold. Other expenses such as shipping of the product can be considered a Cost of Sale.


I recommend consulting your accountant for help in selecting which to use in tracking stocks. For reference, check out these articles: 

That should answer your concern for today.


Let me know if you need anything else. I’m always here to keep helping. Take care!

View solution in original post

Not applicable

Re: What is the difference between cost of sales and cost of goods sold and which should I use to...

Many thanks, I will ask my accountant which they prefer, I am guessing this is the same for Stock vs stock asset accounts