• From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Topic: Purchase account instead of COGS

Hi!
I wonder, if it is possible to have a similar procedure on purchase side as on sales side, where we have hust a sales account.
So, we would like to use an purchase account instead of 'COGS Account' and 'Inventory Account' and 'Item Assembly Cost Account'.

Would be glad, if somebody has an suggestion.

barney

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Purchase account instead of COGS

HI,

This is not a problem for service items. Just put the Purchase account on the supplier and it will be used.
If you want to use a purchase account instead of the Inventory account, you will not be able to monitor your inventory and this can be a disaster. At least you should know what happens if you do. Eventually contact an Accountant.
FA is very flexible in setting up your items/suppliers/customers accounts.

/Joe

  • From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Re: Purchase account instead of COGS

Hi Joe,

thanks for answering. smile

Well, just put an purchase account on the supplier doesn't work, as we have different items with different taxes per supplier.

So, the second way: Beside the 'inventory desaster', what will happen there with other accounts or is 'just' the inventory account affected?

Best regards,
barney

  • joe
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Purchase account instead of COGS

As I said before this is a matter of accountancy, so please consult an accountant.

/Joe

  • From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Re: Purchase account instead of COGS

Ok. Thanks.

barney

  • joe
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Re: Purchase account instead of COGS

No hard feelings, barney.
It is just that we don't have the resources to help you with accountancy matters.

/Joe

  • From: Germany
  • Registered: 04/30/2011
  • Posts: 99

Re: Purchase account instead of COGS

No, of course not.
Thanks again and cu.

barney

8 Reply by salmanahmed25 (edited by salmanahmed25 01/26/2012 12:31:35 pm)

  • Registered: 10/07/2011
  • Posts: 7

Re: Purchase account instead of COGS

Hi Joe,

Can you please let me know that if we are purchasing some items like printing paper etc, which are defiantly an expense of organization, what would we use in the filed of Inventory account?

Waiting for your response.

....
Salman

  • joe
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  • Posts: 5,107

Re: Purchase account instead of COGS

If this is an expense for you and you are not reselling the paper (stock item), you can just use GL Items in the Supplier Invoice form for this. You can even preserve the suppliers Purchase account, so you don't have to look it up in the GL Items every time.

/Joe