Last time we looked at how to Adjust Income Accounts by both Account and Item, in this article we will look at Adjusting Cost of Goods Sold and Expense Accounts by both Account and Item.
For this example, the accountant needs to make the following adjustment to the General Ledger:
In the example above, the Job Materials Account (Cost of Goods Sold Type) is linked to several non-inventory parts. The Tools and Machinery account is not linked to any Items on the Item list.
Step 1. Open the Write Checks window and enter the Journal Entries bank account in the Bank Account field.
Step 2. On the Item tab, select the non‐inventory part Item or Items you wish to debit and enter the amounts. For this example the total debits for all non‐inventory parts is $6,000.00.
Step 3. On the Expenses tab select the Tools and Machinery account and enter a negative amount for $6,000 to zero the Check.
COGS Figure 1
Step 4. Save the Check. Then, with the Check displayed, press CTRL+Y to create and print a Transaction Journal.
Next time, in part 3 of this mini-series, we will look at Adjusting Sales Tax Payable by Sales Tax Item(s).