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A
AVPCarriers
March 13, 2023
Question

COGS vs Supplies Expense

  • March 13, 2023
  • 1 reply
  • 0 views

For a distribution company that wraps skids/pallets with wrap. Are the items purchases to wrap the skid/pallet considered supplies expense or COGS?

1 reply

T
Trish_T
March 13, 2023

Hi AVPCarriers,

 

It's a pleasure to see you in Community.  Welcome!  It's important that you're on the right track with your expenses and cost of goods sold, in QuickBooks Online.  I'd be glad to provide some insight here!

 

The cost of goods sold are related to business expenses incurred when a transaction takes place.  Whereas an expense includes the costs to run your business.  For more detail on various accounting terms click here.  

 

Feel free to reach back out if you have any other questions.  We'd be happy to help!

 

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