It is important to note that Sage 50 Canada requires specifying a COGS class account for Inventory type products, and an Expense class account for Service type products. This requires establishing special GL configurations in Manage to differentiate cost of sales between these two product types.
Sage 50 Canada only has 2 product types, Inventory and Service. In Manage, however, there are 4 different “Type Xref” values from which to choose when defining a Product Type: Inventory Part, Non-Inventory Part, Other Charge, and Service. These XRef values dictate which item type will be created in Sage. The following table illustrates these mappings.
The “Type Xref” can be set in ConnectWise Manage System > Setup Tables > Products > Product Types. In the following screenshot, we’re creating a Product type record called Fixed Cost Service. The Type Xref is of type Service. All Fixed Cost Service products created in Manage will map to Sage 50 Canada as Service type products and will therefore require an Expense class account to track cost of sales.
In the below example, we’re creating a Fixed Cost Service. Note that the Category/Subcategory is set to Managed Services / Managed Services.
In Manage, the cost of sales account will still be labeled “COGS”, but we specify different accounts for product revenue using the Category / Subcategory. In the below example, only Managed Service category products will have a “COGS” account of 54500.
In Sage, we can create our Expense class account 54500 by setting the Account Class to Expense on the Class Options tab.
Notice that if we were creating an Inventory Type product in Sage, our COGS account would need to be a Cost of Goods Sold Account Class.
Now when we transfer an invoice with our REMOTE BACKUPS product, the expense account will properly link to account 54500, which is an expense class account.
Properly configured Inventory Type products in Manage, will map to a separate Cost of Goods Sold account class.