hopewaves
New Member

If , I don't use Inventory , {Just buy & sales materials on order} , how Cost of goods sold will calculate ?

I run my small business , trading only buy and sale products on confirmed Purchase orders from my customers , so no Inventory ,

In this case how would calculate Cost of gods sold , shall Net purchases would consider as COGS?

‎June 7, 2019 3:08 PM
0
2 Replies
2,134 Views
Reply
Bookmark Icon
Hal_Al
Level 15
Level 15

Get your taxes done using TurboTax

There's an alternate way to do it. You use the inventory section (line 36, section III of schedule C) to enter your purchases of goods to be sold. 

In TurboTax (TT), when asked about inventory, check the box "My business buys and immediately resells goods". Next select "Cost" for your method of valuing inventory. When asked for your beginning and ending inventory, leave both boxes blank. On the next screen you will be asked to enter your purchases (and, in separate boxes,  any other costs you want to assign to cost of goods sold).

View solution in original post

‎June 7, 2019 3:08 PM
0
2,049 Views
Reply
Bookmark Icon
VolvoGirl
Level 15

Get your taxes done using TurboTax

Don't fill in or use the COGS and inventory section at all.  Just enter the purchases as Supplies or Other Expenses.

I assume you are using the Home & Business version?  Go to Business tab- then Continue
Choose Jump to Full List -or  I'll choose what I work on

Then…..
Business Income and Expenses - Click the Start or Update button

Then click EDIT by the business name and the next screen should be a list of  topics,
Business Profile, Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.
 
Under Business Expenses, Click Start or Update by Other common business expenses
Supplies is about the 14th item down.
Other Miscellaneous Expenses is the 16th item under Expenses - Click the Start or Update button
‎June 7, 2019 3:08 PM
2,049 Views
Reply
Bookmark Icon