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Frequent Contributor *

How Do I Remove Old Job Costs?

I have a job that closed in a previous tax year.  Accountant did not get all of the costs moved to basis when property sold, so I have ~$5K of direct construction costs just hanging around in the books.

 

How can I remove these?

 

Thank you!

3 Comments
BRC
Established Community Backer ***

Re: How Do I Remove Old Job Costs?

These are real costs to you, right? For things you purchased or employees you paid or similar?

 

If so, then you shouldn't remove them.  You could remove the job name from them, but there's little point in that in most cases.

Frequent Contributor *

Re: How Do I Remove Old Job Costs?

Absolutely they are real costs. But, the accountant "missed" them, and they weren't transferred to (for lack of a better term) COGS. The result was that the company showed more profit that it should for that tax year. The costs will always be in a "cost of construction" account, and always an asset on the books.  If that is acceptable, then I will leave them where they are.

 

Thank you for taking the time to reply to my question.

BRC
Established Community Backer ***

Re: How Do I Remove Old Job Costs?

I'm sorry but I don't understand.

First you asked how to remove the costs, and now you're saying they weren't entered?

 

I don't know what 'transferred to COGS' means exactly, but if the costs are recorded as expenses and you want them to use a COGS account instead, you can edit them and change them, or enter Journals to shift the costs to COGS as is appropriate. 

 

But assuming the costs are currently entered in your system as expenses, then your bottom line won't really change in this case.  Expenses will just be shifted to COGS.