Accounting Cost of Goods Sold and Inventory Item Cost


Sorry, @Kobus. The inventory functions of Manager use several hard-coded accounts. I’ve never used them, so I don’t understand them and do not know how they should be reflected in your multi-step income statement.

General accounting question - CGOS and wages

I discovered a better way to do this,which solves the problem.

After the creation of the Production Order, simply do an Inventory Write Off to clear the final product.

Any Comments on this?


Yeah, that will work. But it’s just more work since you have to manually keep writing off inventory items and you won’t be able to obtain profit margin figures for your inventory items.

As I said, wait until custom control accounts are implemented. They you can specify for each inventory item its own CoGS expense account.


@lubos I tried it, but it doen’t work that way.

Pls see attached the screen shots.

Like you asked in purchase Invoice, I capitalised $200 for freight for the 10 pieces of Inventory item ABC. Inventory now shows 11 pieces with an Inventory cost of $1200. I think the value is correct here for the Inventory Item, but it still should have been 10 pieces. Now shipping is also categorised as an additional piece of the Inventory Item ABC

Can you let me know what I should do here?

Thanks a lot


Try this method: -

  1. Create a stock item for ABC
  2. Create a stock item for shipping
  3. Purchase ABC on a Supplier Invoice.
  4. Create a production order for the 10 x ABC and 1 x Shipping
  5. Give the Final Product a name
  6. Create a sales and a cogs account for the product (Sales – ABC) and COGS – ABC
  7. The stock will be deducted from the Inventory with the cost
  8. When you Invoice, Invoice the Final Product Name on the Sales – ABC account. The shipping will automatically be included in the invoice.
  9. Do an Inventory Write Off to the COGS – ABC Account (The Developers are busy with a module to correct this. This is only a work Around)

This works for me. Whether you have 1 x ABC or 100 x ABC the shipping will only be R 200.00.
Hope this works for you.

Inventory with shipping cost


Yes, but remember it is only a work-around in the meantime untill the developers have completed the promised custom control accounts


@lubos so does it mean that for now there’s no solution? or have I done it wrong?


There is no elegant way to record this at the moment. One workaround is to decrease quantity from 10 to 9 so total quantity as per invoice will be 10.


@lubos that’s not an option right, decreasing the qty? So for now, we have to manage manually in Excel, the costs associated with COGS that we pay to different parties right?


What I’m saying - it is an option. The best way to record this at the moment is to simply divide total purchase (1,200) by quantity (10) and then just record purchase of 10 items at 120 unit price = 1,200 total which will be posted to Inventory on hand.

Next month, I will fix this issue so you will be also able to add amount to Inventory on hand with zero quantity. This would be useful for capitalizing non-qty amounts such as shipping.



Again I think you are doing a tremendous job with this program.

When do you think this will be completed? How will we know when it is done?


Keep checking

It’s among top 3 features I’m working on so it won’t take long.



Man Thank you for the great work you are doing with this piece of software. I love it. IT is very user friendly.


Gee Whiz you have been busy when looking at all this fixes and stuff.


@lubos another issue on this front:

In the PI, how can you make the payment to the supplier in US$ and pay the shipping, freight, import duty, clearing charges (all billed and paid in local currency).

Is this possible?

If not again, the Bank Account payments won’t tally. Because supplier payments are done in US$ and other COGS payment are done in local currency.

Pls help


It certainly sounds as though these items are billed separately, not all by your US supplier. If that is true, they not only can but should be separate invoices.


@Tut is correct. You have two different suppliers. Two different purchase invoices.


I have upgraded to 16.1.18, but no change on the following: -


Custom fields are created under Settings. The ability is definitely there once Production Orders tab is enabled.


Tanks I will try it