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Cost of Goods Sold

Last post 07-05-2009 4:51 PM by Alwyn. 1 replies.
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  • 07-01-2009 6:24 PM

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    • Posts 1

    Cost of Goods Sold

    I am an Avon Rep and I purchase catalogues every two weeks for my customers.  They are distributed free of charge to each customer or location.  I do not know where to post these costs or what acct # to use.  I also purchase perfume or lotion samples to include in some orders.  Can someone help me? 

  • 07-05-2009 4:51 PM In reply to

    • Alwyn
    • Top 25 Contributor
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    • Joined on 01-05-2008
    • Alwyn Enterprises
    • Posts 288

    Re: Cost of Goods Sold

    If you are using the inventory module and you have all of your products listed for control purposes then I would add the catalogues as an item. When you give them away enter an invoice to your self showing the part number and quantity given using a sales price of zero dollars. This will cause your expense to be recorded correctly with no revenue showing. Similar could be done for the samples.

    If not using the inventory module all of these items are expensed to purchases just as everything else is expensed. You could be using a number of expense accounts to differentiate between the various lines of products and similar with the corresponding revenue accounts. This would help show which lines are more profitable and the cost of samples would be included.

    Hope this helps

    Clyde 

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