Non inventory items HELP!!

[BK]

When using SOP (GP 9.0) with non inventory items, should the system be
generating an entry to COGS and credit to inventory. Are you supposed to
create a separate natural code for non inventory items. I am really
confused. Can someone please illustrate what the journal entry should look
like.

Thanks
Barb

[Richard Whaley -- MVP]

It really depends on the NON-inventory item.

If you are truely selling something not listed in your item cards, then no
COGS account entries are entered.

Some of the non-inventory "items" (Miscellanous, Flat Fee, etc) do create
COGS entries with an offsetting entry to the "Inventory" account, which is
typically set to some expense or contra-expense account.
--
Richard L. Whaley
Author / Consultant / MVP
Documentation for Software Users

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Post by BK
When using SOP (GP 9.0) with non inventory items, should the system be
generating an entry to COGS and credit to inventory. Are you supposed to
create a separate natural code for non inventory items. I am really
confused. Can someone please illustrate what the journal entry should look
like.
Thanks
Barb

[Leslie Vail]

In order for the system to generate a COGS entry you must enter a Unit Cost
on the Item Detail Entry screen. When you do that the system will generate
the entry to Debit COGS and Credit whatever account you have set up in the
Comany Posting Accounts - sales series Under Non-Inventoried items. The
theory here is that when the Non-Inventoried item was purchased, the
Non-Inventoried items account was debited. When you sell the item, the
credit should clear out that account. Be careful when you put Non-Inventoried
items on a purchase order because that's where the debit account comes from
when it is received.

Post by BK
When using SOP (GP 9.0) with non inventory items, should the system be
generating an entry to COGS and credit to inventory. Are you supposed to
create a separate natural code for non inventory items. I am really
confused. Can someone please illustrate what the journal entry should look
like.
Thanks
Barb