We want to sell a service to customers but pass on...
# ask-stanley-ai
j
We want to sell a service to customers but pass on the service to a vendor. How can we accrue the liability for the cost of the vendor's service and then reduce the liability and have the COGS be a separate expense account?
c
AI generated answer (using internal Slack threads):
****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ****** To accrue the liability for the cost of the vendor's service and then reduce the liability and have the COGS be a separate expense account, you can follow these steps: 1. When you receive the service from the vendor, you can record it as a liability in your books. This can be done by creating a Vendor Bill in NetSuite. The Vendor Bill will debit an expense account (which could be your COGS account) and credit Accounts Payable. 2. When you sell the service to your customer, you can create a Sales Order and then an Invoice. The Invoice will debit Accounts Receivable and credit Sales Revenue. 3. When you pay the vendor, you can create a Vendor Payment. This will debit Accounts Payable (reducing the liability) and credit your bank account. 4. If you want to separate the COGS from other expenses, you can create a separate expense account for COGS. When you create the Vendor Bill, you can select this COGS account to be debited. Please note that this is a general process and the exact steps may vary based on your specific business processes and NetSuite setup. It's also important to consult with your accountant or a NetSuite professional to ensure that your accounting entries are correct.
Slack thread 1: here (available only if the original thread was posted in the last 90 days)
Similarity score: 0.801404715
Slack thread 2: here (available only if the original thread was posted in the last 90 days)
Similarity score: 0.801359177
Slack thread 3: here (available only if the original thread was posted in the last 90 days)
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