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jessi81
Level 1

cogs for a service

Should I be use COGS for a repair service that carries no inventory but orders parts for each job? I have been using job supplies?

Solved
Best answer September 21, 2022

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Rustler
Level 15

cogs for a service

In the chart of accounts you can create a COGS type account called Cost of Sales (COS).  The only thing that does that is different than using an expense account is where it shows on the P&L.  it is up to you which way you do it.

 

COGS, at tax time, is the cost of items held as inventory and sold

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1 Comment 1
Rustler
Level 15

cogs for a service

In the chart of accounts you can create a COGS type account called Cost of Sales (COS).  The only thing that does that is different than using an expense account is where it shows on the P&L.  it is up to you which way you do it.

 

COGS, at tax time, is the cost of items held as inventory and sold

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