Hello,

My company offers Digital Advertising Services. We don't have any inventory. 

When a client signs up/pays us, we purchase domains from a vendor, pay for ads from a vendor, etc. 

We pay for these purchases, not the client. 

Are these purchases recorded as COGS or as an expense? 

If they are recorded as an expense, what type of expense?

*Thanks for your help, I am losing my mind!