Cost of Goods

cluckerclucker Member Posts: 1

I have a dropshipping business and need to record the purchases I make, I don't hold inventory. Just confused where to do this as if I click on Chart of Account / Expenses - I can see Cost of Goods, but there is no selection for this when trying to allocate transactions. I assume I'm missing something simple but would appreciate assistance.

Comments

  • MikegMikeg Member Posts: 299 ✭✭✭

    clucker,
    The chart of accounts section is used to create and maintain accounts for the financials i.e. balance sheet and income statement. If you want to assign purchases in your cost of goods sold, be sure you have an account in the cost of goods sold section of chart of accounts called "purchases". The transactions page (accounting/transactions) is where you would assign cash expenditures to purchases.

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