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      How do COGS work?

      Cost of Goods Sold (COGS) allow you to classify Expenses that are incurred on behalf of your Client(s) as well as Expense Categories. Or, if you just want to log Expenses for your business, you can use the steps here instead.

      Marking Expenses as COGS also ensures the Expense is allocated correctly on the Profit & Loss report in the Cost of Goods Sold section under Income, even if the Expense is never billed onto an Invoice. You can also find a list of all Expenses marked as COGS by exporting your Expense Report.

      If you're looking to assign and rebill Expenses so you can Invoice them to your Clients, 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.

      The Expense will now be marked as COGS. It will also automatically reflect this in the COGS section on your Profit & Loss report.

      If you've chosen to mark Expenses in this Category as COGS, all future Expenses assigned to this Category will automatically be marked as COGS for you.

      Note: If you have Recurring Expenses, you'll need to edit them and follow the steps above to mark future generated Expenses as COGS automatically.

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