• From: Canada, Yukon
  • Registered: 09/27/2014
  • Posts: 121

Topic: Is Cost of Goods for Services actually used?

Hi Gurus,

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?

bobloblian's Website

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

Re: Is Cost of Goods for Services actually used?

Hello,

The COGS account in the Service Items is only used if you buy this type of service from a vendor (supplier) and resell it to your customers.
Otherwise just ignore the COGS field.

Joe

  • From: Canada, Yukon
  • Registered: 09/27/2014
  • Posts: 121

Re: Is Cost of Goods for Services actually used?

Hi Joe,

Thanks for the clarification, tested and working as you described.

bobloblian's Website