E-commerce
COGS Recognition — Order Fulfilled
Transferring the cost of sold inventory to Cost of Goods Sold when an order ships.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cost of Goods Sold | Expense (+) | 45.00 | - |
| Merchandise Inventory | Asset (-) | - | 45.00 |
💡 Accountant's Note
COGS is recognized at the moment of sale (shipment / delivery). Each order fulfilled reduces inventory and increases the cost recognized on the income statement.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.