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zawhitledge
July 22, 2020
Question

Expensing COGS to a Line Of Credit (Other Current Liability) Account

  • July 22, 2020
  • 1 reply
  • 0 views

Hi there. If this is in the wrong place, let me know where I should move it to!!

 

I run a construction company and have lines of credit at various suppliers around town. I use a COGS system to track expenses for different projects and service calls. When creating an expense, it does not allow me select the "other liability acct" as the payment account. I can select it as the category, but then i dont get the COGS Category classification I am looking for. 

1 reply

john-pero
john-pero
July 22, 2020

One method that might work for your situation is to change each vendor to a credit card style account.  Then when you purchase something, post the "cc" charge from Louie's Lumber or Dora's Doors to your COGS account.  To even streamline what you are doing, use products/services and billable expenses and charge the expense directly to a customer job or project

Z
zawhitledgeAuthor
July 29, 2020

Thanks for the reply John! I really do appreciate it. We currently do tie all expenses incurred for specific jobs to that customers "project." I did originally set it up as a credit card acct. Then while adding various accounts, I stumbled onto the "line of credit" acct and thought that the description fit better. Im going to leave this up a little while longer and see if anyone has come up with a way to expense to a LOC acct. More so out of curiosity. Thanks again

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