Build Assembly credit amount in COGS - Profit and Loss Report

Hello, @itsjayem.

Allow me to share some insights about the Build Assembly credit amount in the Cost of Goods Sold (COGS).

The Build Assembly credit amount in the (COGS) in your Profit and Loss Report represents the value of assembled inventory that has been credited to your inventory asset accounts during a specific accounting period.

When a manufacturing or assembly process is completed in a business that tracks inventory, the cost attributed to the assembled items includes the cost of raw materials, labor, and overhead. This cost is recorded in the company's financials. In accounting terms, when you build an assembly, the cost of the individual components used in the assembly is moved from the individual item asset accounts where they would have a debit balance to the finished goods account, which is credited for the average cost of the components.

Here are a couple of articles that you may find helpful:

• Track the products you manufacture
• Understand inventory assets and cost of goods sold tracking

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