Change COGS to expense

Elaine89406 · ‎July 09, 2020

I set up an account with the account type of Cost of Goods Sold and as a subaccount of Cost of Sales and have used it for quite a while. I have decided that this account should have been an expense and not COGS. I tried to change the account type to Expense but when I do that I get this message: "You cannot change the type of a subaccount. It must be the same as its parent account." Also, when I remove the checkmark for the subaccount and hit save, I get: "You cannot change the level of an account that is associated with a 1099 category. To change the level of this account, you must first delete its association in the 1099 preferences." I'm wondering, before I go too far, if this is going to mess things up.

SisiResti · ‎July 13, 2020

hi @Elaine89406

is the account is related to the inventory item?

if yes, the process will be complicated.

but I suggest by the most simple way to make a general journal at the end of the time monthly by doing this steps :
1. make an account that categorized in expense

2. do your transaction as usual or you can input new transaction using the new account

3. for the transaction that already recorded as COGS, you can manually reclass them by using a general journal (dr Expense account; cr COGS account), please do it the same as period you reporting e.g. monthly and not doing it in 1 sum/yearly in term to make the expense is in the same period as your report period.

hope this helps

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Change COGS to expense

Change COGS to expense

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