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      How do COGS work?

      Cost of Goods Sold (COGS) are the direct costs incurred when selling your services to your Clients. COGS are created by marking an Expense as COGS manually, or when assigning an Expense to a Client or Project which automatically marks it as COGS.

      COGS are different from general operating Expenses, which you can learn more about here. If you're looking to assign and rebill Expenses so you can Invoice them to your Clients or Projects, you can find the steps here.

       

      Mark an Expense as COGS

      1. Go to the Expenses section
      2. Click on an existing Expense, or the New Expense button
      3. If editing an existing Expense, click the Edit button
      4. Under Expense Settings (on the right), click on Cost of Goods Sold
        Cost of goods sold option on new expense.
      5. Check the box off to mark it as COGS
        Mark expense as cost of goods sold checkbox.
      6. A new option will appear, asking if you'd like to remember the Expense Category selected as COGS for all future Expenses - this is optional
        Mark to remember expense category as COGS for future.
      7. Click Done to finish.

       

      Notes

      • You can manually unmark an Expense as COGS after it’s been assigned to a Client or Project by editing the Expense
      • If you have a Recurring Expense, ensure you edit the Recurring Expense and mark it as COGS so that all generated Expenses are already marked as COGS for you
      • Categories marked as COGS will result in all future Expenses assigned to this Category automatically marked as COGS moving forward

       

      FAQs

      Where do COGS appear in my Reports?

      • COGS appear in the Cost of Goods Sold section under Income on the Profit & Loss Report rather than under general operating Expenses
      • Export your Expense Report to see all Expenses marked as COGS

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