My COGS account seems to be incorrect on a Profit and Loss report.

Legacy KB ID: 2166

Question

Why does the COGS entry on the Profit & Loss report seem incorrect?

Answer

• If you track inventory in Reckon Accounts, then you need to be vigilant in receiving stock and entering cost prices.
• Whenever stock is received by the business the quantities & costs of this stock need to be entered via a bill. This will update the average costs of the goods on hand.
• When you make a sale, the COGS account is updated with the average cost of the item being sold.
• If this average is incorrect, then the P&L report will also be incorrect.
• If you do not enter the bill for the stock before selling the stock, then the average cost will not be correct.

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