COGS computation presented on the Chart of Accounts

[icecream]

When I click on my COGS on the chart of accounts, it shows the COGS entry from the Sales Invoice
SI NO. 01 - DR. 2,300

But I saw someone using manager with COGS presentation like this:

There is another layer of purchases and closing balance.

What was the difference? Is that the set up of the chart of accounts? Looking forward to your insights. Thank you!

[AJD]

@icecream

Is that the set up of the chart of accounts?

Yes, this is how it is done

[icecream]

So how can I set it up like that?

[AJD]

Like this by adding a new Subgroup (COGS) under Income:

Or like this by adding COGS Group and Subtotal Net Income: