Cost of Goods Sold Accrual Report

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The Cost of Goods Sold Accrual Report is accessed through the Reports Window, Accounts Payable folder.  Accrued Cost of Goods is merchandise for which you have invoiced to the client but have not yet paid the Vendor.  This report lists Components in a Project that meet this condition by COGS Account with the cost of each Component displayed.


cogs accrual


This report can be printed for a range of Projects.  The report lists each Component under the Project within the corresponding COGS Account.  Also listed is the Purchase Order upon which the Component was included, the ordered date, Client Invoice date, as well as estimated costs for each Component.  The report can be printed retroactively as of certain month.  To remove a Component from this report, simply remove the Component from the Purchase Order or delete the PO in its entirety.


The Cost of Goods Sold Accrual report lists all Components that have been included on a Purchase Order and have been Invoiced to the Client but have not had a Vendor Invoice recorded against them.  Once a Vendor Invoice is recorded, the Component will drop from the report.  The report is often used to examine higher than expected profitability on the Income Statement due to an increase in Revenue with no associated increase in Cost of Goods and can provide the proper amount to compensate for the disparity via a monthly Journal Entry.