Finding the Cost of Goods Sold (COGS) Account on Items

NetSuite provides you a way to assign accounts to an item for things like COGS (Cost of Goods Sold), Asset, Income, and various other accounts. If an item in NetSuite does not have an COGS or Asset account assigned to it, you will not be able to create an order with that item. This means that you must set a COGS and Asset account on all your items.

To find the COGS account for an item:

1. Go to Lists > Accounting > Items.
2. Select an item.
3. Click View.
4. Click the Accounting subtab.

When transactions post a Cost of Goods Sold (COGS) amount to the general ledger, the cost posts to the default Cost of Goods Sold account. This COGS account helps you track your total expenditures on items you sell.

You can choose a default COGS account for Inventory, Non-Inventory, Service, and Other Charge Items.

To select a default COGS account:

1. Go to Setup > Accounting > Preferences > Accounting Preferences..
2. Click the Items/Transactions subtab.
3. In the Default COGS Account field, select a COGS account.
4. Click Save.

Employees with permission can change the account on individual item records.

You can view the amounts that post to the default COGS account in the cost of goods register.