Financials

[BigRigGin]

Hello, I'm having troubles working out some me of my financial information.

My dilemma is at the Cost of Goods Sold.

Basically We do not need to hold inventory, therefore we do not need to pay for the manufacture of product upfront.

I will pay for the product making after the customer has paid me.

It's especially confusing me for my first month when combining my start up costs?

Should I include it because the customer payment will still be coming into my bank account ?

 

[Mr D]

You will still be having cost of goods sold. Just you paying after rather than before.

 

[GraemeL]

Suggest you create a purchase order on your supplier at the same time as you get order from customer. COGS is then sum of goods invoiced to you by supplier plus outstanding PO's.