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ByDesign GL Account Type

Hi,

Would like some experts' help on the below:

1) What is the difference between GL account type "COGS" and "Costs/Expenses"?

As some of the expense accounts may also be part of the costs of goods sold, what account type should be assigned to the expense account?

2) What is the impact if wrong account type is assigned?

I tried to search in the Help Center but there is no clear explanation on the above. Appreciate if any experts can help.

Thanks in advance

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1 Answer

  • Best Answer
    May 30, 2017 at 12:04 PM

    Hello,

    Can you please check the help center document : Account Type (If you don't find the document in the help, Search for : Display and Edit Chart of Accounts -> Under creating new GL accounts -> Account type section, here you will have the link).

    I hope this will help you.

    Cheers,

    Harshal

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    • Hi Harshal,

      Thanks a lot for your answer. According to the guide, COGS account type is under Sales ledger. Does this mean that I need to assign costs associated with cost of sales e.g. freight costs to the COGS account type, instead of assigning it to Costs/ Expenses account type?

      Regards,

      DK