Using Inventory and Cost of Goods
I run a small online retail outlet and have been using wave for the past 7 months. When setting up I wasn't sure whether I needed to use 'Inventory' or 'Cost of Goods' when categorizing transactions from suppliers. Now that I have explored my reports a little more depth it's possible that I might have been using the wrong expense category. The description in Wave says that expenses related to the cost of selling good should come under CoG, so all my purchases from suppliers for stock and shipping the item out has come under this category.
Can someone help explain whether I need to re-categorise all supplier payments as 'Inventory' instead? And whether shipping costs associated with those items being sent out as CoG?