Peachtree Generated COGS

[mamalaura]

I am a Peachtree Accounting 2004 user and am having a problem with its automated cost of goods postings. I am a chocolatier and whenever I buy my raw materials, they immediately go into the COGS account (as my ingredients are always fresh and don't linger in an inventory account). My problem occurs when I generate an invoice, Peachtree is automatically coming up with what it deems to be cost and putting it into the COGS, effectively "double dipping" and charging me twice for the cost of the raw materials.

At this point, I would love to know how to

1) prevent this from happening in the future
2) correct the erroneous automated cost of goods and subsequent INAJs (I can always do an AJE and correct that way, but was wondering if there is another way)

I thank you in advance for any help you may throw my way. I am not an accountant by any stretch of the imagination and all these weird postings are about to make me cry and we all know that there's no crying around chocolate. Help me be the happy chocolatier again!

Thanks,
Laura

[rick Prindivill]

You are charging the COS account when you purchase your raw ingredients and at the same time you are placing the goods into Inventory. When you sell or adjust the Inventory Item quantities, the Inventory module is charging the General Ledger COS account a second time.

Solution to your problem is one of two choices. Do not charge the COS account in Accounts Payable and intern charge the Inventory BS account OR
change the GL Accounts as listed in the Maintain Item listing for each of the respective ingredients. There you will find 3 GL references, one is for the BS Inventory Account and one is for the P/L COS Account. Set these two accounts to read the same BS Account for Inventory. Either of these solutions will resolve your future COS posting problems.

[mamalaura]

Thank you. I will have to try your suggestions to see what happens.

Any idea why it is doing it for only certain customers and not all of them? All of my customers are supposed to be set up the same way (I say supposed to be because I am the one who set them up and anything goes somedays).

Laura

[SMC]

Are the items that you are selling set up as stock items or non-stock?

If they are non-stock items, and you are getting a COGS entry when they are sold, then it is because a cost has been entered in the Last Unit Cost field in Maintain Inventory Items. If that is the case then you just need to remove the entry in the Last Unit Cost field.