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Anonymous
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Accounting for cost of goods sold on amazon sales

What is the best way to record  COGS on amazon sales using the perpetual inventory system? I've already recorded amazon sales and expenses on an accrual basis by raising invoices. 

If I import inventory listing in QB, then raise an invoice to record the COGS for the month, I'm required to input a sale $ related to respective sold SKUs - if I enter $0 sale value, then QB still generate a $0 entry to sales and related AR (sample - CR Sales $0/ DR AR $0 ; DR COGS $50 / CR Inventory $50). While this won't be an issue on a total basis, the GL will still have numerous $0 entries every time I raise an invoice to record COGS. 

 

How have other Amazon sellers dealt with this issue? 

 

Note that I want to use perpetual inventory system in order to track monthly profitability, and since a full inventory count is not performed monthly (we also store and sell inventory from our warehouses), the periodic inventory system will not be feasible. 

1 Comment
Level 15

Accounting for cost of goods sold on amazon sales

if I enter $0 sale value, then QB still generate a $0 entry to sales and related AR (sample - CR Sales $0/ DR AR $0 ; DR COGS $50 / CR Inventory $50). While this won't be an issue on a total basis, the GL will still have numerous $0 entries every time I raise an invoice to record COGS.

 True
and the only way around this would to be to not use an invoice or sales receipt, and instead do an inventory adjustment.

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