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sgreathouse
Level 2

Cost of Goods Sold

Hi, everyone. We buy computers and monitors at distributer prices and then charge retail. We do not keep them as inventory, just as we need them for specific jobs. Would I categorize those purchases at COGS or expenses? 

3 Comments 3
Rustler
Level 15

Cost of Goods Sold

Neither, in the chart of accounts create a new COGS account for Cost of Sales (COS) and post the purchases to that account

sgreathouse
Level 2

Cost of Goods Sold

Thank you for your response! Is there a way to know how much we make off of these purchases? Like a report to run? What info would I need to make sure is in QB to do this? Thanks again for all of the help!

sgreathouse
Level 2

Cost of Goods Sold

When I go to create the Cost of Sales account, the options I'm given are:

 

Cost of Labor- COS

Equipment Rental- COS

Other Costs of Services- COS

Shipping, Freight and Delivery- COS

Supplies and Materials- COS

 

Would it be Supplies and Materials? Also, now I'm wondering if I have been categorizing other purchases incorrectly? We buy supplies (batteries, cables, tools) while on jobs and I created a Supplies and Materials expense account for these purchases. 

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