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Lisa NY
Level 3

Account for C CORP Vendor_ Outside Sales_ COGS?

Hello, my knowledgeable folks! 
I have a vendor who is a C CORP, that solely provides our company with solid leads for projects through his energy C CORP. Upon completion of said project, we pay an agreed-upon commission for that project. The question is: is this part of COGS? Many thanks! 

3 Comments 3
LeizylM
QuickBooks Team

Account for C CORP Vendor_ Outside Sales_ COGS?

Let me share some information on how QuickBooks Desktop handles the cost of goods sold, Lisa NY.

 

The cost of goods sold (COGS) refers to the cost of producing an item or service sold by a company. This can eventually help an organization in calculating the net profit earned after selling the items. 

 

Also, QuickBooks does allow the users to create an account for the Cost of Goods Sold which can, thereafter, be used for calculating the total. 

 

The items included in this account consist of the following:

 

  • Labor required for manufacturing a product or providing a service
  • Materials required for creating any product
  • The overhead cost associated with the production

 

I'm adding this article to learn more about COGS: Understand Inventory Asset And Cost of Goods Sold Tracking.

 

I'd suggest consulting your accountant for other ways how to record COGS for non-inventory items. 

 

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.

Lisa NY
Level 3

Account for C CORP Vendor_ Outside Sales_ COGS?

Thank you so much for your time! I will contact my accountant to get a better idea of where we should capture costs! 

 

JaeAnnC
QuickBooks Team

Account for C CORP Vendor_ Outside Sales_ COGS?

Thanks for getting back to us, @Lisa NY.

 

We're glad that the information provided by my colleague was able to help you with your concern. We also appreciate you following their advice to consult your accountant about recording COGS for non-inventory items. Should you have further concerns about managing projects, please let us know through the reply section below. We're always available to assist you. Stay safe, and have a great day ahead!

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