COGS Journal Entry Processing: Example

This example demonstrates the recognition journal entry for a COGS schedule. The COGS deferral account is credited and the COGS recognition account is debited.

For a COGS recognition schedule created for 152.10, the extended unit cost is over 12 months. The following table shows how the journal entries appear per month.

Account		Debit	Credit
	COGS Deferral		12.67
COGS Recognition		12.67

An event-based COGS schedule works the same way.