Cost of goods sold
What the things you sold cost you to buy or make. Subtracted from revenue to get gross profit.
In Solo Superstars
The 5000–5060 accounts: inventory sold, job materials, subcontractors, freight in. Shown as their own block on the Income statement, above operating expenses.
Example
Mugs sold at cost 1,800 + subcontractor 1,400 = COGS 3,200.
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
- direct costs
Related
- 5000 Cost of Goods Sold — The direct cost of the inventory you sold. Subtracted from revenue before operating expenses to give 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.
- Operating expense — The cost of running the business: rent, software, meals, insurance, payroll. The 6000–7999 accounts.