What is the name of your state? California
I'm an online seller of merchandise I purchase from China and sell online . When trying to figure out my COGS do I input the expense of the purchases when I receive the invoice from my supplier or when I actually pay it and receive the merchandise.
Example: I put in an order of product A in November 2018 and I paid a 30% deposit. In early January '19 I paid the remaining 70% balance and received the product shortly thereafter.
As I understand it, under accrual-based accounting you have to account for expenses as soon as they are incurred. Thanks in advance.
I'm an online seller of merchandise I purchase from China and sell online . When trying to figure out my COGS do I input the expense of the purchases when I receive the invoice from my supplier or when I actually pay it and receive the merchandise.
Example: I put in an order of product A in November 2018 and I paid a 30% deposit. In early January '19 I paid the remaining 70% balance and received the product shortly thereafter.
As I understand it, under accrual-based accounting you have to account for expenses as soon as they are incurred. Thanks in advance.