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Hi,
I sell herbal teas and had a few questions.
1. I had a graphics designer design my logo and boxes. What expense category would this be?
2. I had a company make the physical boxes. What expense category would this be?
3. Then I had a company that made the tea blends and packaged them in the boxes. What expense category would this be?
BTW,
I also sell Pink Salt, so I turned on Class. That way I can track the expenses of each Class. So if I had to use COGS, would I have to have a different COGS for each class, or would the Class tracker already compensate for the COGS for each class?
Thank you
Hello there, @smomin.
I appreciate you getting back to me and for providing clarification.
A possible reason why it's not showing is that you might haven't turned on the Products and Services on your company settings. If that's the case, here's how to turn it on:
Once done, you should be able to see the Products and Services category in the Credit Memo.
Please let me know how it goes or if I can be of further assistance. I'm only a few clicks away if you have additional questions. Take care always.
Hi LollyNino_C,
I believe you are replying to someone else's question.
Thank you
Let me jump into this thread and allow me to provide some information about class tracking and COGS, smomin.
Classes represent meaningful segments in your company such as departments or product lines. Normally, you use this to track your transactions. Whereas, Cost of Goods Sold (COGS) tracks all of the costs associated with the items you sell. Usually, you calculate COGS by adding the cost of inventory at the beginning of the year to purchases made throughout the year. Then, subtract the cost of inventory remaining at the end of the year. You'll want to reach out to your account to check if there's a need for you to have a different COGS for your class.
Also, categories are used to classify products and services your company sells to customers. You can choose the category that suits and is more related to your product. You'll also want to reach out to your accountant if you feel this is a little bit complex and if you're more confused with these categories.
In addition, use reports to know your inventory. Please read this article for your reference: Use Reports To See Your Sales And Inventory Status.
Reach out to us if you have any other concerns about classes and COGS. Remember, we're here to make sure that everything is taken care of.
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