COGS as loss?

I just did a P&L and it put COGS in there. These are inventory items, right? how do I keep them out of profit and loss until sold? They are supposed to be assets until they are sold.

Mike D.

Reply to
Michael Dobony
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Look at the Inventory Item setup. 3 accounts should be listed: Cost should point to COGS; sales should point to Income and the Inventory information points to your Inventory Asset account.

Reply to
Laura

Yea, I figured that out at about 1am. Now I am stuck with over 100 entries that are entered as plain Bills and not as Inventory. Is there an easy way to transfer all of a vendor's bills from expenses to inventory?

Reply to
Michael Dobony

Generally no.

Did you use Items on those transactions? Fixing the item setup *can* correct this type of problem. Under certain conditions you will be prompted to change the existing transactions when you save the item.

Reply to
Laura

No, I did not use Items :( It is early and I am setting up a duplicate company and reentering the data. The 2001 Accountant version is supposed to be able to open 2 companies at a time, but i can't seem to get that to work. Any ideas?

Reply to
Michael Dobony

In order for inventory to work properly then you HAVE to use Items.

The alternative is to book everything to COGS and at the end of the month/quarter/year do an adjustment that Debits Inventory / Credit COGS so that your ending balance in the Inventory account reflects the ending COST of the inventory.

Take a look at this page on the types of inventory:

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Periodic uses adjustments while Perpetual uses Items.

As for opening 2 companies at once that is available with 2011 Premier Accountant's version. You posted 2001--I'm sure that's a typo. I have not tried it yet so I can't help you.

What I ususlly do is to bring my laptop to my office and have 2 screens going at once side by side. that works better for me than toggling back and forth between 2 companies or computers.

Reply to
Laura

Ok I am getting this sorted out. Thanks for the patience. I have one more related question, on the Item page I have both Cost and Amount columns. Do I need to fill both of them out? What is the difference between these items?

Reply to
Michael Dobony

The Cost is the average cost of the item for all inventory in stock. Usually one does not need to fill this in. For existing items fill in the quantity on hand and total value in the inventory information section and let it calculate the avg cost.

The US version has cost and sales price not amount so I am guessing that they are actually the same thing. Fill in the amount/sales price if you have a fixed price that you sell that item for. This amount will automatically show up on the sales invoice/sales receipt for that item.

Reply to
Laura

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