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April 1, 2021
Question

When I book sales, i can see a cost of sales for the service revenue is getting created automatically , please assist me

  • April 1, 2021
  • 1 reply
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1 reply

KlentB
April 1, 2021

I can shed a light on that, aniquebio.

 

By default, QuickBooks Online automatically creates additional accounts based on your industry. There are also special accounts that are added when certain features are turned on.

 

When you record a sale for the first time, the program automatically creates the Cost of Goods Sold/Cost of Sales account for you so you don't have to manually set it up. This used to track the cost associated with your line of business. If you sell products or provides services, this includes inventory, distribution, and sales force costs you've incurred to finish the product/service.

 

To learn more about this topic, I recommend reading this article: Manage default and special accounts.

 

In addition, here are some resources that you can browse to help organize your Chart of Accounts: 

 

I'm happy to assist you again if you have any other concerns or further questions regarding Chart of Accounts. Just add a reply here or start a new thread.