Reporting - Calculate COGS for Untracked Inventory items: Opening Stock + Purchases - Closing Stock
To make the profit and loss report calculation is based on Cost of Goods Sold = Opening Stock + Purchases - Closing Stock.
Purpose: To get the figures easily in P&L report by deducting the closing stock from purchases.
AdminXero Team
(Admin, Xero)
shared this idea
Hi community, in the way untracked inventory in Xero works it isn't possible to automatically calculate cost of goods sold for a period in your reports.
There is a way to go about this yourself through entering Manual Journals to account for the Cost of Goods sold, and adjusting the value of inventory on your Balance Sheet.
You'll want to enter your Conversion Balances into an account that has a Current Asset type rather than an inventory type (Inventory type is reserved for use with tracked inventory in Xero and can't be coded to on manual journals).
To avoid potential taxation and reporting issues - We highly recommend contacting your accountant to check whether this is suitable for your business, or if you need additional clarification on what journals to enter.
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Megan Mohr
commented
Include COGS against Sales for non-tracked items. Eg: if bill is for particular item that is then on-sold, cost should be compared to sale so profit/margin can be easily understood.
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Miguel Ángel Sánchez
commented
A pretty good answer is given here pending Xero's introduction:
https://central.xero.com/s/question/0D51N00004BXrgLSAT/yearend-manual-journal-entry-to-nontracked-inventory-asset-accounts -
Lili Huzejrovic
commented
Please introduce this function.