Create Cost of Goods Sold Entries

Use this screen to compute the Cost of Goods Sold (COGS) transfer journal entry.

This entry transfers the Work In Process (WIP) project costs, which have been recorded per your setup, from the Balance Sheet to the Income Statement. These WIP costs are stored on the Balance Sheet until they are transferred to the Income Statement as COGS.

The timing of this process depends on your company's setup of the Manage Cost of Goods Sold screen for each project. In that screen, if you have selected Billed Amount, Estimate at Completion as the Calculation Method, create this journal entry after posting your bills. Execute the Compute Burden Costs screen after creating and posting the COGS journal entry. If you have selected an Estimate to Complete method, post bills and compute the burden before creating the COGS journal entry. This ensures the WIP costs have been updated for inclusion in the COGS entry. Run the Compute Burden Costs screen again after posting the COGS entry.