Internet Management Cost

[tstesen]

Can someone explain what Internet Management Costs are?

In QuickBooks under Cost of Goods Sold there is a category titled Internet Management Costs. Is there where web site related expenses belong such as web hosting and domain name registration?

Or are those expenses better suited to Marketing & Promotional Expenses under Expenses.

This is all so confusing. I have tried searching on the internet for an answer to my question or any info on Internet Management Costs but have been unsuccessful.

Help!

Tanya

[borisg]

you must be using a new version of QB. I have QB pro 2006 and that category "Internet Management Costs" is not one of the default accounts that comes with the system. I think QB is just trying to get up to date as internet related expenses become a bigger part of a business' expense.

I always categorize my internet related charges (hosting, domain name, web design work) under marketing. I think that's what most companies do. I also throw my eBay fees under Mktng.

[tstesen]

Originally Posted by borisg

you must be using a new version of QB. I have QB pro 2006 and that category "Internet Management Costs" is not one of the default accounts that comes with the system. I think QB is just trying to get up to date as internet related expenses become a bigger part of a business' expense.

I always categorize my internet related charges (hosting, domain name, web design work) under marketing. I think that's what most companies do. I also throw my eBay fees under Mktng.

I'm using QuickBooks Pro 2006. This is our first year doing our taxes as a partnership and I must admit its all a bit confusing.

Under Cost of Goods Sold QuickBooks gives us
Advertising Costs
Event Costs
Film Production Costs
Internet Managemetn Cost
Media Planning Costs
Print Production Costs
Reimbursable Expenses
Video Production Costs

I'm just confused as to whether web site hosting and domain names would fall under the Cost of Goods Sold (for a service business) or under the general expenses -> marketing category.

[borisg]

COGS is only to be used when entering items/services that you are reselling.

If the item/service is for your company's use...such as the cost to host your website or the purchase of your domain, then it falls under general expenses "marketing" category.

However if you are creating web pages and reselling domains and hosting, then those costs fall under COGs.