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ghostowlsales
Feb 10, 2014, 10:53 AM
I enter a daily journal entry for sales in the tasting room. I debit my bank account and credit the income account related to the items sold. Because I am using a journal entry, there is no place to use product/services therefore my expense accounts are not being affected. This is making it so my P/L is completely wrong. All of the sales in a month from the tasting room is not calculating in COGS as it would if I were using an invoice. Can you please help me?

Thank you!

paraclete
Feb 10, 2014, 04:59 PM
you confuse recording sales and cost of sales. Sales are recorded in the manner stated, cost of sales must be calculated and recorded

Cost of sales = opening stock plus purchases/production - closing stock