COGS or Building Supplies Account?

Define construction job. There are many situations where you would not post to either.

The job is to side a house. I am wondering where to put the purchase of Siding.

I just want to clarify. My example is the purchase of vinyl siding for a siding job I am doing....still COGS ?

Thanks Steve

Sure, why wouldn't it be? Cost of goods sold encompasses direct costs to produce a product. Some accountants don't look at what contractors produce as a product but what else would it be?

One of the main reasons for you to use a product like QB is to provide good information to help you make financial decisions regarding your company. Direct costs to produce the product you sell, in the case siding installed on a building, should be a part of your COGS. I also include direct labor and direct labor expenses if that labor is producing. IOW, the payroll for the people working on the job and the payroll expenses related to those people.

OTOH, putt>I just want to clarify. My example is the purchase of vinyl siding for a