Cost of good sold for non inventory

Rabee_77 · ‎November 08, 2022

Question

Is it possible to add the products/services in journal voucher

I believe if we get this option we can recod cost of good sold for Non- inventory items

Or what is the solution to record COGS when we buy bulk different raw materials and do manufacturing and sell finish good item.

To avoid high COGS before start our selling our finished good items

Thanks

RCV · ‎November 08, 2022

Let me share some information about the Cost of Goods Sold, Rabee_77

The normal process for goods you stock and sell are to use the inventory-type item. These will create COGS when sold. Then, you can choose to use non-inventory items only when the value of that stock is not significant, or if you are recording the stock value manually through accounts other than inventory.

In this case, I'd suggest consulting your accountant for other ways how to record COGS for non-inventory items. For more information on how to calculate COGS, check out this article: How To Record Cost of Goods Sold. Also, I'm adding this article to learn more about COGS: Understand Inventory Asset And Cost of Goods Sold Tracking.

Also, the option to add the products/services in the journal voucher is unavailable in QuickBooks Online. Here's an article you can refer to for more details about adding product and service items to QuickBooks Online.

Keep me posted if there's anything else that you need about COGS. As always, we're just a few clicks away if you need further assistance.

View solution in original post

RCV · ‎November 08, 2022

Let me share some information about the Cost of Goods Sold, Rabee_77

The normal process for goods you stock and sell are to use the inventory-type item. These will create COGS when sold. Then, you can choose to use non-inventory items only when the value of that stock is not significant, or if you are recording the stock value manually through accounts other than inventory.

In this case, I'd suggest consulting your accountant for other ways how to record COGS for non-inventory items. For more information on how to calculate COGS, check out this article: How To Record Cost of Goods Sold. Also, I'm adding this article to learn more about COGS: Understand Inventory Asset And Cost of Goods Sold Tracking.

Also, the option to add the products/services in the journal voucher is unavailable in QuickBooks Online. Here's an article you can refer to for more details about adding product and service items to QuickBooks Online.

Keep me posted if there's anything else that you need about COGS. As always, we're just a few clicks away if you need further assistance.

Rabee_77 · ‎November 10, 2022

Dear

thanks for the solution which you provide

i need your opinion regard the below process if will work as other solution and i need your advise if there is any wrong impact in the process later

i create an items as example

to make ready item let us use Cake and i use flour,sugar,milk as raw material use for making a cake

create Product and make expense account Inventory Asset:food raw material

these raw material (flour,sugar,milk)

so when buy from supplier these items by making bill this transaction will DR Inventory Asset:food raw material and CR Account payable

then when we make Cake and sell it to customer by issue invoice i need to record COGS !

so i make expense transaction by chose Payment account / Inventory Asset:food raw material

and category Cost of Goods Food raw Material and also use item detail by chose (flour,sugar,milk)

i test this exercise and it is success please find attached

i need your support if i can get confirmation that this solution in acceptable and no any other impact on other reports or data

best reagrds

Rabee Jbara

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Cost of good sold for non inventory