Accounting for goods out (shipping inventory)

Each time items are marked as shipped they will be removed from stock and the cost of goods sold accounting journal will be created.

These types of journals are always in base currency.

Deferred cost of goods

There are two settings which affect the date and accounts used on a cost of goods sold journal.

These settings allow cost of goods sold at the point the items are shipped or on the same date as the revenue is recognized. Find these options at Settings > Company > Accounting: Options.

  • Use invoice date as posting date for cost of goods sold (for orders invoiced before shipping)

    This setting is only applicable to orders which have been invoiced before being shipped.

    When enabled, the cost of goods sold journal will be posted to accounting with the same date as the invoice.

    When disabled, the cost of goods sold journal will be posted to accounting with today's date.

  • Defer cost of sales for orders shipped not invoiced (for orders shipped before invoicing)

    This setting is only applicable for orders which have been shipped before being invoiced.

    When enabled, the cost of goods sold journal will be posted to accounting with today's date - however, the value will be recorded in a "deferred cost of goods" account code. When the items are invoiced this value will be moved to the cost of goods sold account with an additional journal using the invoice date.

    When disabled, the cost of goods sold journal will be posted to accounting with today's date and straight to cost of goods sold.

Learn more about how these settings affect financial reporting here.

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Goods out (GO)

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Where multiple items are within the same shipment, each goods-out note row results in two journal rows as described above.

When cost of goods sold is deferred at point of shipping, an additional journal is created at the point the order is invoiced. This will move the deferred amount to the relevant cost of goods sold account.

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