When is the COGS generated for layby sales?


Latest update: - Sakshi Wadhwa

Question

When is the Cost of Good sold generated for a layby sale - at the point of creation or at the point of completing the sale?

Setup

  •  Vend for Mac or PC

Answer

The COGS are generated when the sale is first created. Hence, if the average cost of the product has changed at the point of completing the sale it will not be considered.

Additional Information

What is average cost?