Re: COGS

[Dieter S. <dsi...@sq...>]

The cost for goods are posted as an expense when the goods are sold.

You buy ten of item A, the cost of the items is recorded in inventory,
when you sell four of them, four are removed from inventory and the cost
for the four items is posted as an expense.


Dieter Simader    http://www.sql-ledger.org   (780) 472-8161
DWS Systems Inc.     Accounting Software       Fax: 478-5281
=========== On a clear disk you can seek forever ===========

On Mon, 31 Dec 2001, Caffeinate The World wrote:

> could someone help me understand how Cost Of Goods Sold (COGS) is used
> in a transaction?
> 
> __________________________________________________
> Do You Yahoo!?
> Send your FREE holiday greetings online!
> http://greetings.yahoo.com
> 
>