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Level 1

Inventory

Hi, I am very new to this & am lost trying to create my inventory items & chart of accounts. I purchase 1 yard of fabric - goes to COGS; got that. But what income account do I assign my product too? i.e. I buy fabric, make an item for the customer & only use 1/4 of the yard, I charge for my service not the fabric... so what income account to I assign. I can't build an assembly as the items change with literally every order? Same question for my non-inventory items such as machine needles?

 

Thanks in advance

Solved
Best answer February 18, 2019

Best Answers
Level 15

Inventory

Posting the bulk fabric purchase to COGS is fine

 

make your item and create a service item for it, link it to income or product sales income, or ... what you name the income account is immaterial just insure it is an income type

 

By posting to cogs when you purchase you are not using inventory items, and for your business model that is the best way to do it. An assembly item would not work for this either, assembly items are finite, and in sewing there is always drops, excess, miscuts, etc

View solution in original post

1 Comment
Level 15

Inventory

Posting the bulk fabric purchase to COGS is fine

 

make your item and create a service item for it, link it to income or product sales income, or ... what you name the income account is immaterial just insure it is an income type

 

By posting to cogs when you purchase you are not using inventory items, and for your business model that is the best way to do it. An assembly item would not work for this either, assembly items are finite, and in sewing there is always drops, excess, miscuts, etc

View solution in original post

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