I’m switching from a homegrown system to Manager, so please bear with me. I would like to create a few COGS (vs. Expense) accounts to allocate the cost of raw materials used in manufacturing (Sch. C, Line 38), product packaging (Line 39), etc. I couldn’t find any documentation or posts that specifically addressed this, so I created a new Chart of Accounts group, with Expenses checked, named COGS and added various sub-accounts. Before I proceed fully with this method, can someone verify whether or not this is the correct way to create a COGS account? Thanks.
Seems right to me.
I keep seeing this term COGS. What exactly is this?
Cost of Goods Sold
Aah, rather obvious now that I think about it.