COGS vs Sales Inv

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MJV_10433200
MJV_10433200 Member Posts: 18 ✭
in Reckon Accounts (Desktop)

Hi, Please help!

New to all this, and im getting myself confused. i want to know the best way to process the following through my reckon book

I buy an aircon, I sell an aircon, (no markup), I charge a fee for the service to install (my income)

Would you do this under GOGS purchase / sale for the inventory item and then bill my service/time?


Or easier just to do sales inv for time and offset aircon purchase/sale against expense account?


Thanks

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  • Acctd4
    Acctd4 Accredited Partner Posts: 3,426 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
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    It depends how you want to view your financials. On your Profit & Loss it will show Income minus your COGS = Gross Profit minus your Expenses = Net Income.

    The air con is a direct COGS - eg it’s a purchase cost that you incur in order to sell it.

    Your service fee for installation can be either - some people like to include that as a COGS also, others prefer to show it as an expense.

    Shaz Hughes Dip(Fin) ACQ NSW, MICB

    *** Reckon Accredited Partner (AP) Bookkeeper - specialising EXCLUSIVELY in Reckon Accounts / Hosted ! ***

    * Regd BAS Agent (No: 92314 015)* ICB-Certified Bookkeeper* Snr Seasonal Tax Consultant since 2003 *

    Accounted 4 Bookkeeping Services

    Ballajura, WA

    shaz@accounted4.com.au

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    (NB: Please give my post a Like or mark as Accepted Answer if I have been able to resolve your query as this helps others when seeking solutions!)

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