Cost Of Goods (Inventory) Sold; QuickBooks vs Accountant
There seems to be a conflict between the accepted method used by an accountant to calculate the cost of goods and the way QuickBooks calculates the cost of goods sold. This was a source of conflict a number of years ago when I was last in business which I am now having to revisit. This maybe an ATO requirement however my accountant and I think most accountants calculate the Cost Of Goods Sold as follows Opening Stock + Purchases - Closing Stock = Cost of Goods Sold WHEREAS QuickBooks immediately assigns inventory to a Stock Asset account and Goods Sold when it is sold or otherwise accounted for, to the relevant Cost Of Goods Sold account. So when my accountant asks me how much my purchases where I can't tell her except by deduction and reversing the equation i.e. Closing Stock + Opening Stock - COGS = Purchases Again have I misunderstood something that couldn't otherwise keeping my accountant happy?