@quinn1 wrote:
Your thoughts on this are appreciated!
@katyqbadvisors
Things like, rock, equipment rental for jobs, insulation, pipe fittings and other materials I purchase, and bring to my job site, then completely use on the job... I have been categorizing these as COGS in my chart of account as they were already created in QB (construction materials cost, equip rental for jobs, etc) Now I am reading that cogs is for inventory, for things you sell or resale.. which I more, move dirt, build house pads, drive ways and do some demolition jobs and small construction jobs. Am I still correct in categorizing these things as COGS?
That's Okay. No need to change it. These are still the Cost of Sales (COS) related to customer tasks/jobs.
In the QBO Chart of Accounts, they only have Cost Goods Sold (COGS) as Account Type which is QuickBooks fixed format and there is no way to change it to COS even you want it.
You can call it COS under Name title if you want. For example, for materials, you can call it Cost of Materials - COST. For labor, you can call it Cost of Labor - COST and so on.
These are the Direct Costs before the Gross Profit line in the P&L report. And that's what more important.
Hope this helps!
