Common questions about S-Corporation Cost of Goods Sold in Lacerte

Cost of Goods Sold is used for Form 1125-A and the Balance Sheet.  Refer to the following information to assist with Screen 14, Cost of Goods Sold questions.

Data entry needed for the 1125-A

Cost of Goods Sold Section

• Beginning Inventory : Enter the inventory at the beginning of the year. The amount prints on Form 1125-A, line 1 and carries to Form 1120S, Schedule L, line 3b. If you make an entry in "Beginning Inventories" (Screen 29, code 104), the program does not carry that amount to Form 1125-A, line 1.
• Purchases Enter the total purchases to print on Form 1125-A, line 2.
• Cost of Labor : Enter the total purchases to print on Form 1125-A, line 2.
• Amortization, and Depreciation should be entered on Screen 16 and tied to the Form 1125-A

Inventory Information

• Inventory Methods Check Cost or Lower of cost or market or you can use Other method with written explanation as to the use of the other method.
• There's a Force Form 1125.A box last entry under the Inventory Method section.

• Form 8916-A Supplemental Attachment to Schedule M-3
• Balancing an Out of Balance Sheet on Form 1120S