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jessi81
September 21, 2022
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cogs for a service

  • September 21, 2022
  • 1 reply
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Should I be use COGS for a repair service that carries no inventory but orders parts for each job? I have been using job supplies?

Best answer by Rustler

In the chart of accounts you can create a COGS type account called Cost of Sales (COS).  The only thing that does that is different than using an expense account is where it shows on the P&L.  it is up to you which way you do it.

 

COGS, at tax time, is the cost of items held as inventory and sold

1 reply

Rustler
RustlerAnswer
September 21, 2022

In the chart of accounts you can create a COGS type account called Cost of Sales (COS).  The only thing that does that is different than using an expense account is where it shows on the P&L.  it is up to you which way you do it.

 

COGS, at tax time, is the cost of items held as inventory and sold

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