I’ve read the location of COGS to be a personal preference. (may even be a legal one in some cases)
I can’t see it is anything but an expense, though there is certainly disagreement on the subject. My experience with using it in a P&L involved Restaurant and Retail. In both cases, it appeared *after* the Revenue section but before the general Expenses section. (as its own section) Likely the reason for the placement for tax purposes is a better advantage as a reduction of Gross Revenue rather than as deductible expense. (again, might even be a legal requirement) Regards, Adrien > On May 2, 2020 w18d123, at 10:58 AM, Stephen M. Butler <kg...@arrl.net> wrote: > > > For a small business I was carrying Cost-of-Goods-Sold (COGS) as an > expense item. When my CPA filed the taxes, I noticed that he placed it > as a deduction to revenue. So, after a chat with the in-house > accountant, I moved COGS to be under the Income parent. > > Thankfully, the internal representation for amounts still worked > correctly and the COGS account now showed as a reduction to Income > without me having to go change the sign on each transaction. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
