COA Setup


Hello, I'm not an accountant but a small business owner. I'm in the
process of designing my COA and I'd like to get some professional
opinions. Since I will be using a rather high end accounting system
that uses a SQL backend and since I'm well versed in SQL I'd like to
setup my COA so as to track as much info as possible. It's a retail
business selling inventory.
So rather then have all my items post to a single inventory account
I'd like to have a separate inventory, COGS, Sales accounts for each
item.
For example here is an inventory item account: 1300-01-0001
Where the first segment 1300 is the main Inventory account
The second segment 01 is the item category
The last segment 0001 is the item itself.
To get the total value of inventory in my GL to compare to my
subledger I just sum all 1300 accounts. If I need to break it down
further I sum by 1st and 2nd segment. To get the total in inventory
for an item, I just lookup by the last segment.
COGS and Sales will behave the same way. Opinions?
Thanks!
G
Reply to
GiJeet

Site Timeline Threads

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.