Selecting a Default Cost of Goods Sold (COGS) Account

When transactions post a Cost of Goods Sold (COGS) amount to the general ledger, the cost posts to the default Cost of Goods Sold account. This COGS account helps you track your total expenditures on items you sell.

You can choose a default COGS account for Inventory, Non-Inventory, Service, and Other Charge Items.

To select a default COGS account:

1. Go to Setup > Accounting > Preferences > Accounting Preferences..

2. Click the Items/Transactions subtab.

3. In the Default COGS Account field, select a COGS account.

4. Click Save.

Employees with permission can change the account on individual item records.

You can view the amounts that post to the default COGS account in the cost of goods register.

Related Topics

• Setting Inventory Costing Preferences
• Costing Methods
• Inventory Costing and Assembly Items
• LIFO/FIFO Inventory Costing and Advanced Receiving
• System Cost of Goods Sold Adjustments
• Viewing Inventory Reports
• Inventory Costing Recalculations
• Troubleshoot Inventory Costing
• Cost Accounting Status on Item Records
• Item Return Costing
• Group Average Costing
• Standard Costing
• Item Costing

General Notices