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Join nowWelcome to the Community, @brian100.
I want to make sure that you'll be able to reclassify your accounts accordingly. I'd be glad to discuss this in detail and guide you in getting things done.
You may use Cost of Goods Sold (COGS) to account for how much it cost to produce your products and services. This includes direct materials and direct labor expenses to produce a good that is sold.
Know that changing the type or detail type of an account may affect your accounting and reporting.
Here's how:
If you have an accountant, It would be better to get in touch with them for guidance.
I've got you an article for more information about common chart of accounts tasks: Understand the chart of accounts.
Let me know if you have other concerns. I'll be around to help. Stay safe.
Hi LieraMarie, and thanks for your response!
I am not trying to change the actual bank account profile, I am only trying to reclassify certain expenses as COGS.
For example.
I hope that made sense. :- )
We're glad to have you back, brian100.
It's a big help that you've provided further clarification of your concern.
When making a sub-account to the COGS, it would only be possible if they are having the same type of account. With that being said, we're unable to set the shipping as a sub-account to the COGS since it is recorded as an expense type of account. Unless we change its account type as Cost of Goods Sold, the system will allow you to save it. It's best to consult your accountant so they can provide you the things that should be done in the right process for this.
Ideally, we can only set the shipping as COGS from the item. It goes like, Shipping (service item) expense account = COGS. Also, you may want to explore the articles below wherein additional information can be found.
If there's anything else that I can help, please let me know by adding a new post below. Keep safe, and be well!
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