cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Created with Sketch. Join our Small Business Relief Initiative. Support a GoFundMe today.
Level 2

Cost of Goods 0 in transaction journal, but shows up in COGS final account

Hello,

 

New to quickbooks, but ran across something I don't understand.

 

I bought Product A for $5 and have it as a bill and an inventory item

I have a Sales Receipt for Product A where I received $20 for the sale.

When I go into the transaction journal for that Sales Receipt, the COGS account (and inventory account) both show a change of $0

But, when I look at my Insights under home, I see it under COGS.

Further, if I go back to the bill for Product A, and change it to $1000, the COGS in Insights also changes to $1000.

However, the transaction journal for the sales receipt continue to show changes of $0.

 

Any ideas?

Solved
Best answer 12-20-2019

Best Answers
Highlighted
Level 15

Cost of Goods 0 in transaction journal, but shows up in COGS final account

It is the difference between cash and accrual accounting

in cash accounting (reporting) the item on the bill does not count until it is paid for.  When you pay the bill, that cost will move to COGS

 

When you get strange stuff like this always check the reporting basis, QB is accrual accounting and only reports on cash basis

View solution in original post

1 Comment
Highlighted
Level 15

Cost of Goods 0 in transaction journal, but shows up in COGS final account

It is the difference between cash and accrual accounting

in cash accounting (reporting) the item on the bill does not count until it is paid for.  When you pay the bill, that cost will move to COGS

 

When you get strange stuff like this always check the reporting basis, QB is accrual accounting and only reports on cash basis

View solution in original post

Need to get in touch?

Contact us