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K
KBford
August 25, 2020
Question

Cost of Sales

  • August 25, 2020
  • 1 reply
  • 0 views

I buy in products to sell on at a profit.

If I raise a Purchase Order then allocate this to a Bill/Expense when the product arrives the cost of this does not show up on the Profit and Loss report. It only shows up as a Cost of Sales when I actually sell the item. Is this right?

1 reply

Jen_D
Jen_D
August 25, 2020

Thanks for posting here, @KBford,

 

Yes, the reporting the amount correctly. Normally, Cost of Sale is only affected when you sell stock items on invoices or sales receipts.

 

When you purchase stocks, they are posted in the Balance Sheet report under Stock Asset. The only time it posts in the Profit and loss is when a sale is created where QuickBooks debits Cost of sales and credits Stock Asset.

 

Here are some related links to help you with your stock tracking in QuickBooks Online:

 

Let me know if you have any questions about this or need further help with other topics in QuickBooks. I'll be right here to help you. Have a nice day!

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