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Level 2

Where doI Put Machinery Sales?

We manufacture Machinery for farming and vineyards. My question is where do I put the sales? They are income but what account? COGS? Sales Income?

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Best answer 02-27-2019

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Level 12

Re: Where doI Put Machinery Sales?

The sales are sales income, your cost of production is COGS. Since you purchase raw materials and add labor you will be converting one form of inventory into another. Your expense of production will not happen until you make a sale.  Your finished goods will be two sided inventory items tgat post income to sales and expense to COGS

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2 Comments
Level 12

Re: Where doI Put Machinery Sales?

The sales are sales income, your cost of production is COGS. Since you purchase raw materials and add labor you will be converting one form of inventory into another. Your expense of production will not happen until you make a sale.  Your finished goods will be two sided inventory items tgat post income to sales and expense to COGS

View solution in original post

Level 2

Re: Where doI Put Machinery Sales?

Thank You very much. The most simplest things to understand are always the hardest. So now I will go and mark all the product that makes the equipment COGS if it isn't already!  And I already, after reading this have the Machinery Sales marked as sales income.

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