RE: [SL] COGS

[Paul T. <pt...@ho...>]

If YOU bought the parts in 2004, why on earth would you want to invoice =
and
sell them in 2003 is what is beyond me.=20

Maybe you want to show nice turnover figures to say the bank or external
investors? This sort of pulling forward of future revenue is considered
fiddling in Europe.=20

BTW, Good to see you show negative stock figures, means the system is
working correctly otherwise.

Basic rule of thumb: you can not sell what you do not have.=20
So first BUY the Brooklyn Bridge, sell it later is OK.=20
Otherwise you have a negative stock of one bridge.

Paul Tammes



-----Oorspronkelijk bericht-----
Van: sql...@sq...
[mailto:sql...@sq...] Namens Danny Brow
Verzonden: Sunday, September 19, 2004 5:15 PM
Aan: SL
Onderwerp: RE: [SL] COGS



On Sun, 2004-09-19 at 10:45, Paul Tammes wrote:
> I tend to agree here; if these are the facts it would future income =
(you
> invoice something not yet delivered)=20
> Delivery would be practically impossible since you did not buy the
computers
> till January, so all you COULD have sold was air, titled 'computers =
yet to
> be delivered somewhere next year'.=20


I think I will contact a local CPA, it would be impossible for the
government to balance books, if I claim this as income in 2004, and my
client claims it as an expense last year, it would not look right. Not
saying that the tax man in Canada can actually balance the books. Still
though, I did buy the parts in 2004.



> Unless of cause you sold OLD stock, in which case the COGS and revenue =
are
> both in 2003 and should be. The new computers that replace the sold =
stock
in
> 2004 are not to be taken into account in 2003 then I would suggest.
>=20
> You DO take inventory (physical count) and take actual stock into =
account
I
> take it?
>=20
> -----Oorspronkelijk bericht-----
> Van: sql...@sq...
> [mailto:sql...@sq...] Namens Mike Mylonas
> Verzonden: Sunday, September 19, 2004 3:48 PM
> Aan: sql...@sq...
> Onderwerp: Re: [SL] COGS
>=20
> Hi Danny,
>=20
> On Mon, 2004-09-20 at 01:20, Danny Brow wrote:
> > To better explain this I will give you all the details.
> >=20
> <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.=20
>=20
> 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).
>=20
> >From my perpective the issue seems to be one of an accounting
> methodology rather than an issue with SQL-Ledger.
>=20
> I hope that helps shed some light
>=20
> Regards
> Mike
>=20
>=20
>=20
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>=20
>=20
>=20
>=20
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