Cost of Goods Sold & Quick Books

[PIGLEE]

SORRY POSTED TWO TIMES. THOUGHT I HAD LOST IT.

I have never worked with inventory in Quick Books. Clients Bring me a P & L and a Balance Sheet. On the P & L they do not show purchases, they only show Cost of Good Sold. I will tell you what I do, I want your opinion, and would like to know how every one else handles it.

Because I can not see the Purchases on the P & L. I take the beginning Inventory, Add the Cost of goods sold, and Substract the Ending Inventory. Then I adjust the C of GS, so that in the Tax Return I get a cost of goods sold, on the tax return, that matches the figure on the P & L.

What do you do?????

[taxxcpa]

Cost of goods sold

I will have an ending inventory which becomes the beginning inventory of the next year. It will not get into the cost of goods sold until the end of the year. During the year I do not adjust the inventory, but at the end of the year I make an adjustment to cost of sales based on the inventory increase or decrease.

If the client is keeping his own books, then I would do it the same way you do it.

[PIGLEE]

Thanks, it felt right, but a second opionion really helps.