# Multiple inventory cost accounts

**URL:** <https://forum.manager.io/t/multiple-inventory-cost-accounts/8053>\
**Category:** Uncategorized\
**Created:** [December 16, 2016, 2:55pm UTC](https://forum.manager.io/t/multiple-inventory-cost-accounts/8053 "2016-12-16T14:55:48Z")\
**Posts on this page:** 10\
**Page:** 1

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**Author:** ![mpb](https://avatars.discourse-cdn.com/v4/letter/m/ed8c4c/32.png) [@mpb](https://forum.manager.io/u/mpb)\
**Post date:** [December 16, 2016, 2:55pm UTC](https://forum.manager.io/t/multiple-inventory-cost-accounts/8053/1 "2016-12-16T14:55:48Z")

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As I have more that one sales items I would like to have more than one cost of sales accounts each one appropriate to each of the sales items. I am using production orders and all inventory costs go to the one “Inventory-cost” account. How can I have separate cost of sales from production orders? I have tried linking an expense account to an inventory item but this does not appear to work.

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**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\
**Post date:** [December 16, 2016, 4:41pm UTC](https://forum.manager.io/t/multiple-inventory-cost-accounts/8053/2 "2016-12-16T16:41:08Z")

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Have you tried editing your inventory items to post to custom accounts?

![](https://us1.discourse-cdn.com/flex019/uploads/manager1/original/2X/3/3f1f3f52379599c317d066db0e244463e3149217.png)

I don’t know if that will give you what you want, because you were not very specific, but it seems that it should.

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**Author:** ![mpb](https://avatars.discourse-cdn.com/v4/letter/m/ed8c4c/32.png) [@mpb](https://forum.manager.io/u/mpb)\
**Post date:** [December 16, 2016, 4:58pm UTC](https://forum.manager.io/t/multiple-inventory-cost-accounts/8053/3 "2016-12-16T16:58:02Z")

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Thanks Tut  
Yes I have tried having a COS account as a custom expense account for an inventory item that is a component of a production order but it still posts to the inventory-cost account.

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**Author:** ![Tut](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/tut/32/3286_2.png) [@Tut](https://forum.manager.io/u/Tut)\
**Post date:** [December 16, 2016, 5:14pm UTC](https://forum.manager.io/t/multiple-inventory-cost-accounts/8053/4 "2016-12-16T17:14:35Z")

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That is because it is part of the cost of your inventory. Are you literally trying to have a separate COGS account for every single item in inventory? That sounds unbelievably complex. Manager already calculates the average cost of every inventory item, including non-purchased contributions from production orders.

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**Author:** ![Brucanna](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/brucanna/32/1960_2.png) [@Brucanna](https://forum.manager.io/u/Brucanna)\
**Post date:** [December 16, 2016, 7:38pm UTC](https://forum.manager.io/t/multiple-inventory-cost-accounts/8053/5 "2016-12-16T19:38:52Z")

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[quote=“mpb, post:1, topic:8053”]  
I am using production orders [/quote]

When you use Production Orders, you are converting Raw (input) Materials into Finished (output) Goods, therefore you are **_only_** transferring Raw Materials “Inventory On Hand” into Finished Goods “Inventory On Hand”

> [@mpb](#):
>
> How can I have separate cost of sales from production orders?

There are “no” Cost of Sales with Production Orders as nothing is being sold, there is only a transfer within Inventory on Hand

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<div class="post-metadata">

**Author:** ![mpb](https://avatars.discourse-cdn.com/v4/letter/m/ed8c4c/32.png) [@mpb](https://forum.manager.io/u/mpb)\
**Post date:** [December 16, 2016, 11:56pm UTC](https://forum.manager.io/t/multiple-inventory-cost-accounts/8053/6 "2016-12-16T23:56:30Z")

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Thanks Brucanna.  
I am a little confused. I have a sales item of Oil that is processed from Seed. I have a production order with Oil as the finished product and Seed as the component with its own cost of sales expense account. When I do a sales invoice for the Seed the the cost of sales goes to the inventory-cost account. Am I missing a step in the process?

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**Author:** ![Brucanna](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/brucanna/32/1960_2.png) [@Brucanna](https://forum.manager.io/u/Brucanna)\
**Post date:** [December 17, 2016, 12:23am UTC](https://forum.manager.io/t/multiple-inventory-cost-accounts/8053/7 "2016-12-17T00:23:46Z")

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If I understand you correctly - you purchase Seed, convert to Oil and sell the Oil.  
So the process is:  
Purchase Inventory Item - Seed @ 10kgs @ 2.00/kg = 20.00  
Production Order converts Seed in to Oil - 10kgs = 5lt  
So Inventory Item - Oil = 5lt @ 4.00/lt = 20,00 and Seed = zero

The Inventory on Hand account balance stays the same value at 20.00, its just that the Seed has been converted to Oil. The Production Order is only showing you the Quantities but in the background Manager is doing an accounting transaction within the Inventory on Hand account - debiting Oil & crediting Seed

There is no COS for the Seed as it hasn’t been sold, just converted.  
You would only do a Sales Invoice for Seed, if you were selling the Seed to a Customer.

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**Author:** ![mpb](https://avatars.discourse-cdn.com/v4/letter/m/ed8c4c/32.png) [@mpb](https://forum.manager.io/u/mpb)\
**Post date:** [December 17, 2016, 7:41am UTC](https://forum.manager.io/t/multiple-inventory-cost-accounts/8053/8 "2016-12-17T07:41:48Z")

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Thanks Brucanna.  
I shall look into it. I think I missed a step.

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**Author:** ![mpb](https://avatars.discourse-cdn.com/v4/letter/m/ed8c4c/32.png) [@mpb](https://forum.manager.io/u/mpb)\
**Post date:** [December 17, 2016, 11:15am UTC](https://forum.manager.io/t/multiple-inventory-cost-accounts/8053/9 "2016-12-17T11:15:35Z")

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I did not realise the steps in the process. Create production order then sales invoice. Works fine. Thanks guys. Good to find software with a forum that responds with good advice and quickly.

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**Author:** ![Ealfardan](https://sea1.discourse-cdn.com/flex019/user_avatar/forum.manager.io/ealfardan/32/63166_2.png) [@Ealfardan](https://forum.manager.io/u/Ealfardan)\
**Post date:** [January 18, 2023, 3:29pm UTC](https://forum.manager.io/t/multiple-inventory-cost-accounts/8053/10 "2023-01-18T15:29:35Z")

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