Re: [SL] COGS

[Danny B. <da...@fu...>]

On Sun, 2004-09-19 at 09:47, Mike Mylonas wrote:
> Hi Danny,
> 
> On Mon, 2004-09-20 at 01:20, Danny Brow wrote:
> > To better explain this I will give you all the details.
> > 
> <snip>
> > All I wanted was to see if any one else was having the same issues as I.
> > If you got a minute and you've sold stuff in a prior year and bought the
> > product in the year after it was sold, do an income statement and then a
> > trial balance and see if your COG shows up the same on both. And let me
> > know. 
> 
> Unfortunately I cannot comment as to the requirements of your local tax
> laws, in New Zealand, we would treat the above senario as "Income in
> Advance", as you have not actually earnt the income until the goods are
> supplied (being in the next financial year).
> 
> >From my perpective the issue seems to be one of an accounting
> methodology rather than an issue with SQL-Ledger.

>From what I have read, in Canada what you bill for is consider income,
regardless if you actually even give the client the product, or if you
even get paid for it. If you don't get paid for the item it becomes a
bad debt.

So if I sell you something, and mail it all the way to New Zeland, and
the bill is for today, but you don't pay until next year I still made
the money this year.  Same thing if you order something from me now and
pay for it. As long as I have made a bill it's consider earned money.
Sucks eh!

The reason I say it an issue with SL is because, how can you deduct the
cost of the sale when the cost of the sale is not in your books for that
year.  

One thing I notice is that in my Trial Balance for the end of 2003, my
inventory balance was negative about $3000.00 about the cost of items I
sold. And my total cost for good sold so far in 2004 is less the $3000 I
paid for these items, hence SL is doing -$3000 + total COGS for 2004 =
$????, or for instances, if my cogs is $10000 for the year, it would
work out like this.  

-$3000 + $10000 = $7000. Which is wrong because I did buy these items
in. Maybe this parts, right, the only area where the issue shows up is
with the Income Statement.



Dan.




> 
> I hope that helps shed some light
> 
> Regards
> Mike
> 
> 
> 
> -------------------------------------------------------
> This SF.Net email is sponsored by: YOU BE THE JUDGE. Be one of 170
> Project Admins to receive an Apple iPod Mini FREE for your judgement on
> who ports your project to Linux PPC the best. Sponsored by IBM.
> Deadline: Sept. 24. Go here: http://sf.net/ppc_contest.php
> _______________________________________________
> sql-ledger-users mailing list
> sql...@sq...
> https://lists.sourceforge.net/lists/listinfo/sql-ledger-users