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msdavis81-gmail-
Level 1

COGS: I am seeing Job Materials Purchased also showing as COGS. Surely it is one or the other?

 
1 Comment 1
MichelleBh
Moderator

COGS: I am seeing Job Materials Purchased also showing as COGS. Surely it is one or the other?

I have information to share to help you with your items, @msdavis81.

 

I'll clarify why Job Materials Purchased is also listed as COGS in your account. Happy to share it with you so I can guide you accordingly.

 

In QBO, there are two types of COGS: direct and indirect. 

 

  • Direct COGS are associated with the task or client project itself. This could apply to labor, work performed by subcontractors, and supplies.
  • Indirect COGS are still related to revenue generation. But they cannot be linked to a specific customer, job, or project (at least not easily).

 

With this, Job Materials Purchase is part of Direct COGS. That said, there is no action required as they are the same.

 

To give more information about managing inventory and what reports are available in QuickBooks Online, check out the following articles:

 

 

Please let me know if you have any further questions while working with inventory. Have a safe and enjoyable day. 

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