Where doI Put Machinery Sales?

MissB · ‎February 27, 2019

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?

john-pero · ‎February 27, 2019

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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john-pero · ‎February 27, 2019

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

MissB · ‎March 01, 2019

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.

ScriptDawg · ‎April 20, 2020

I can see that this has already been answered, but to reiterate the difference between sales income and COGS, COGS tells you how much you spend to turn your raw materials into sold products.

But how’re you finding it handling your production via QBO? because I know there are a few workarounds for tracking your raw materials and finished goods inventory, but it’s still a headache.

Have you tried checking out the QuickBooks app store for manufacturing software like Katana? It can automatically calculate your manufacturing costs, record your COGS, and track sales, but also integrates with you QBs account, so you can easily sync your finances.

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Where doI Put Machinery Sales?