When I run a transaction report for Cost of Goods sold why does it show small random amounts from bills entered?

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When I run a transaction report for Cost of Goods sold why does it show small random amounts from bills entered?  I would expect it to show tax invoices only as the cost is associated with the sale.
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Sonia Connon

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Posted 3 years ago

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Reckon FAQs, Employee

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 Hi Sonia,

Thanks for asking.

Yes, its a bit bewildering what you see but it is a result of processes that are needed in some circumstances.  

You'll see these sometimes small amounts attributed to a Bill on a report that should only show Tax Invoices and Sales Receipts when you have sold stock you did not have on hand at the time.  More specifically, it only happens when you had some stock level that later fell to zero and you kept selling it;  if you sell stock you never had you will not see this behaviour in regard to that stock.

Just to test it, change the date of the bill to an earlier date so that subsequent sales never take stock levels to the negative, and you'll see the random amount disappear.  

Rest assured that this is normal behaviour that's required to correctly handle you selling stock you once had but currently do not have.  These amounts, however small or large, do not form part of your accounting numbers and have no impact on profit & loss or any balance sheet account.  

Hope this explains this strange and apparently illogical but necessary behaviour.


regards,
John.
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Sonia Connon

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Hi John

This month I have got significant amounts ($3977) showing as bills in COGs.  This is not right. While I can accept small balances, this will effect the P&L.

Regards
Sonia Connon
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Reckon FAQs, Employee

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Thanks for the update Sonia,

Do you have only one CoGS account - the default one created by the programme - or do you have others?

Have you manually passed transactions to the CoGS account?

Next, consider a resort of all your lists and a rebuild then verify of the company file.  

If the issue persists then please call Technical Support for further assistance.

I do not think any issue with the CoGS Report will impact on the Profit & Loss Report, as that report accesses the transaction database and not the CoGS Report.  If transactions are incorrectly processed through the CoGS account, then they may impact on the Profit & Loss.  


regards,
John
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Sonia Connon

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Thanks John.  I have a COG account with sub accounts for the different categories. The information I am looking at is drilled down from the P&L and is directly related.  PSG support haven't been able to give me any clarity on the cause of the issue.  It is a worry because the financial statements will be wrong as a result of this.

Regards,
Sonia