Hello,
I am trying to understand how COGS is reflected in the P&L and I have a specific issue with receiving down payments for assemblies that are not complete let alone built.
For Example:
I invoice 30% or $300 for a $1000 assembly that I will design, procure, and assemble.
I get the note that I do not have enough of these in stock to sell.
When I receive the $300 payment, I see that my P&L reflects that on the income side.
Because I have no BOM or costs at time of down payment, there is no Expense or COGS reflected in the P&L
If later in the project I purchase a widget to add to my BOM, I do see that expense reflected in the P&L
At time of final invoice, I can now build the assembly complete with costs. How does QB know to apply the correct total COGS considering the prior widget expense and invoices with $0 costs.
Is there a more appropriate way to invoice for down payments prior to having a completed BOM?
David
