5000 Cost of Goods Sold
The direct cost of the inventory you sold. Subtracted from revenue before operating expenses to give gross profit.
In Solo Superstars
The 5000–5060 range holds COGS accounts (materials, subcontractors, freight in). The Income statement shows them as their own block above operating expenses.
Example
Sell 10 mugs that cost $4 each: debit 5000 40, credit 1200 Inventory Asset 40.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- COGS
- cost of sales
Related
- Cost of goods sold — What the things you sold cost you to buy or make. Subtracted from revenue to get gross profit.
- Gross profit — Revenue minus cost of goods sold. What is left to cover everything else.
- 1200 Inventory Asset — The cost of goods you hold for sale. An asset until the item sells, when its cost moves to cost of goods sold.
- Chart of accounts — The list of buckets your money can be sorted into: assets, liabilities, equity, revenue, expenses. New workspaces start with a default set you can rename or extend.
- Default chart — The chart of accounts every new workspace starts with, numbered the way QuickBooks users expect. Yours may have been renamed or extended since.