FrontAccounting forum — COGS for Services

Re: COGS for Services

null@example.com (isaacblakejose) — Fri, 12 Dec 2014 06:52:07 +0000

COGS for a manufacturing company would be the raw materials used to make the products they sell. For a retail company, COGS is the cost of buying the items they sell in their store.

Re: COGS for Services

null@example.com (apmuthu) — Mon, 27 Oct 2014 19:22:41 +0000

Wages and Salaries are an expense at the hands of the company being accounted for. You will need to create a Salaries Received (Sales) Account for your purpose.

Re: COGS for Services

null@example.com (russelr) — Mon, 27 Oct 2014 14:15:02 +0000

Joe, Thanks for replying and I'm sure you know a lot than me on FA, but I think you should try the above case and see if what I found with the test case above mentioned.

Re: COGS for Services

null@example.com (joe) — Mon, 27 Oct 2014 13:59:52 +0000

The CoGS account for service items is only used when you are buying this service from a supplier. Service items do not have any COSTs during sales.

/Joe

Re: COGS for Services

null@example.com (russelr) — Mon, 27 Oct 2014 13:49:56 +0000

Hi Joe,

I tried few cases in between now.

Found that it works with when the COGS for a service is mapped to the account items under "Cost of Goods Sold" account group. But
when mapped to any other expense Account groups say "Wages and Salaries", it doesnt work. I suspect there is some hardcoding done in the core or possibly the GL report query is omitting that. Can you check this case please

Re: COGS for Services

null@example.com (joe) — Mon, 27 Oct 2014 12:31:10 +0000

The COGS account is not updated due to the fact that it is a service item. If you buy this service from a supplier the COGS account will be updated.

Joe

COGS for Services

null@example.com (russelr) — Mon, 27 Oct 2014 11:10:59 +0000

Hi All,

A newbie in FA and one in Accounting domain as well. I have a case I'm trying to find a solution for. It goes as below

1. Add an item as a sevice
2. Assigned Category and Item Type as "Services"
3. Assigned Sales Account and COGS Account as "Wages and Salaries" (This is for a consulting services)
4. Added Sales Pricing and Standard Cost
5. Created a sales order for this services and made a delivery

As per my understanding, the Sales Account should be updated with Sales Pricing and COGS Account with Standard Cost. In my case, I can see the "Sales Account" getting updated but not the COGS Account.

Can someone help here ? Its a little urgent.