Scenario A user notices that there is no GL Impact of Cost of Goods Sold (COGS) in a stand-alone Invoice. Solution A. If a stand-alone Invoice has no GL impact on COGS, please check if the Quantity on Hand is zero for all items, then that may be the reason for the lack of GL impact on COGS. If there are available quantities, you… Continue reading Cost of Goods Sold GL Impact on Standalone Invoices
Tag: General Ledger
PART 3.5 – Cost of Goods Sold (COGS) GL Impact
COGS are not expense accounts, but they function like an expense. These are the costs directly associated with the sale of goods or services. This includes the cost of the product for resale, raw materials, packaging, etc. General selling expenses, such as salaries, rent, utilities, and advertising expenses, are not considered part of the cost… Continue reading PART 3.5 – Cost of Goods Sold (COGS) GL Impact
PART 3.3 – Customer Transaction GL Impact
Customer payments are the amounts received from customers in exchange for goods or services sold. To record the payments received that are not yet deposited to the bank, GL impact will show an increase in undeposited funds and a decrease in assets (account receivable). Here’s how to record payments that are deposited directly into the bank.… Continue reading PART 3.3 – Customer Transaction GL Impact
PART 3.1 – Common Sales Transaction GL Impact
Sales orders are non-posting transactions that record the items or services a business plans to sell to the customer. Order fulfillment is the process of fulfilling the sales order of a customer. Example: To fulfill the order, the business will have to pull out some items from its inventory, which will result in a decrease in assets… Continue reading PART 3.1 – Common Sales Transaction GL Impact
PART 3.2 – Vendor/Purchase Transaction GL Impact
Purchase orders are non-posting transactions that are sent to a vendor to keep track of items that are expected to be delivered. They include the associated price and quantity. 2. Item receipts are used to match against an open purchase order when items have been received. The GL impact will show an increase in the asset account… Continue reading PART 3.2 – Vendor/Purchase Transaction GL Impact