Topic: Is Cost of Goods for Services actually used?
When setting up a service item, there is an option to set the COGS account. My understanding when selling a service item that there is no asset to transfer to the COGS account, so it wouldn't be used? To be sure, I tried invoicing a few service items in my test environment and as expected nothing was added to the COGS account.
That got me to wondering what it is there for?
I thought maybe it's an AP thing? Tried in my test environment doing a direct supplier invoice, paid it, sold it and paid that, but nothing is showing up in the COGS account that way either.
So I am still wondering, is there a use for that account on Service items? if so, can anyone enlighten me?