Correct Expense Account nomenclature?
TheAsset
Member Posts: 4
Trying to replicate some bills in my account, and want to ensure I have my appropriate expense account set up for each of my services.
I can set up Products/Services from within a bill without any issue, but if I want to edit them (even change the name) it forces me to fill in the "Expense" dropdown.. but then it won't let me choose a "Cost of Goods Sold" expense account, only letting me choose "Operating Costs" expense accounts
What do you suggest?
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The reason Cost of Goods Sold doesn't appear is because it's a type of expense account used to calculate your profits from selling your goods. If you aren't keeping track of your inventory through Journal Transactions, it shouldn't be used. We have a guide in our Help Center which explains how to manage inventory and how Cost of Goods Sold fits into this equation. You can find it here.
Ideally, you should be creating a new expense account under Operating Costs in your Chart of Accounts, and you can select that for your Bills moving forward.
> The reason Cost of Goods Sold doesn't appear is because it's a type of expense account used to calculate your profits from selling your goods. If you aren't keeping track of your inventory through Journal Transactions, it shouldn't be used. We have a guide in our Help Center which explains how to manage inventory and how Cost of Goods Sold fits into this equation. You can find it here.
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> Ideally, you should be creating a new expense account under Operating Costs in your Chart of Accounts, and you can select that for your Bills moving forward.
Appreciate your response, thanks for the heads up!
I don't have a set inventory, I resell digital licenses which I up sell for profit, so it sounds like it falls under Cost of Goods sold, no? I'll take a gander at the link and perhaps post back here again if I have more questions. Thanks.
Hey @TheAsset , as far as I know, the Bills feature does not limit the Expenses dropdown to perating expenses only. I've tested this in my account, and it looks like all of my expense categories are included in the list.
Could you send me a screenshot with the expense category as it appears on your Chart of Accounts? I'm hoping that will give us a better idea of why that specific account isn't appearing.
> Hey @TheAsset , as far as I know, the Bills feature does not limit the Expenses dropdown to perating expenses only. I've tested this in my account, and it looks like all of my expense categories are included in the list.
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Now I'm having a tough time figuring out where I found that drop down, I'm still getting used to the interface
I did learn that I could find the payment from my transactions and connect it to the outstanding bill I created, so that seems to have worked out.