• Registered: 01/24/2016
  • Posts: 3

Topic: Charging items to COS

I modified the standard chart of account from Cost of Goods Sol to Cost of Services since my client is a service business.

Now, I have items that I want to charge to Cost of Services, but I want keep them in the inventory first while unconsumed. What I want to do is charge the only the actual quantity consumed every time I consume them, but should not be dependent to any sale. How can I do this?

What I can see is "Inventory Adjustments" but it's defaulted to variance and I want to maintain the same. If there's a work around for this, it will also solve my problem regarding the recognition of cost of services in a construction business because just as the same, the issuance of the materials is not based on predetermined quantity and we want to charge to COS only the items that are actually consumed.

Appreciate your help.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Charging items to COS

Revert it back as Cost of Goods Sold and treat it as cost of goods issued on demand when accounted for even if the main line of business is a service one.

apmuthu's Website

  • Registered: 01/24/2016
  • Posts: 3

Re: Charging items to COS

apmuthu wrote:

Revert it back as Cost of Goods Sold and treat it as cost of goods issued on demand when accounted for even if the main line of business is a service one.

How can I tag it as goods "issued on demand"?

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Charging items to COS

Checkout Manufacturing.

apmuthu's Website