Year-end inventory tax¶
Enterprise feature
Inventory is available on the Enterprise plan. Compare plans to find the right fit for your business.
The Year-End Tax tab on the inventory dashboard pulls together the inventory numbers your accountant needs at filing time: the value of what's still on the shelf, what you bought from suppliers during the year, and the cost of the parts your team used on jobs. Together those are the inputs for Cost of Goods Sold (COGS).
Pick a tax year, review the numbers, and download a CSV to hand off.
This is accountant enablement, not tax advice
These figures are pulled from your inventory records to help your accountant. FSM Navigator does not file your return, pick your accounting method, or calculate the final COGS deduction. Always have a tax professional review the numbers.
Who can open this tab¶
Because it shows cost and supplier figures, the Year-End Tax tab is limited to Owners and Inventory Managers. Dispatchers and technicians won't see it.
Open the Year-End Tax tab¶
- Go to the Inventory dashboard.
- Select the Year-End Tax tab.
- Use the Tax Year dropdown to choose the year you're filing for.
The report loads for that year. The dropdown lists the years you have received purchases or recorded parts usage.
The summary cards¶
Four cards across the top give you the headline numbers:
| Card | What it shows |
|---|---|
| COGS — Parts Consumed | The cost of parts your team used on jobs during the tax year |
| Purchases Received (goods) | What you received from suppliers during the year, at cost |
| Ending Inventory (at cost) | The value of what's currently on hand |
| Shipping on Purchases | Shipping charged on the purchase orders you received this year |
How Cost of Goods Sold is built¶
COGS follows a standard formula:
Beginning inventory + Purchases − Ending inventory = COGS
The tab lays out the pieces it can provide for the selected year. Beginning inventory — last year's ending value — isn't reconstructed here; your accountant carries it forward from last year's return. FSM provides the rest:
- Purchases received this year — from your supplier orders (below).
- Ending inventory — the current on-hand value at cost.
- Parts consumed on jobs this year — the cost of parts pulled onto work, which is the COGS figure FSM measures directly.
Two ways accountants handle parts
Some businesses use full inventory-method COGS (the formula above). Many smaller contractors instead deduct parts as materials and supplies — when the parts are used or paid for — and skip formal inventory accounting. The same numbers feed both approaches; your accountant decides which applies to you.
Purchases by supplier (your supplier orders)¶
This is the "Purchases" line of COGS, broken out by supplier. For each supplier you'll see the number of line items, the quantity received, and the total cost — for goods received during the tax year.
A purchase counts here once its purchase order is marked Received or Closed, using the date it was received. Orders still in Draft, Sent, or Cancelled don't count toward the year's purchases.
Keep receipts current
The accuracy of this section depends on marking purchase orders as Received when the goods arrive. See Purchase orders for the receiving workflow.
Where each number comes from¶
Everything on this tab is pulled automatically from records you already keep:
| Number | Source |
|---|---|
| Ending inventory value | Current on-hand quantity × each part's cost, from your parts catalog |
| Purchases received | Received purchase orders — quantity received × cost per unit |
| Parts consumed (COGS) | Parts recorded against jobs during the year, at the cost captured when they were used |
There's nothing to enter on the tax tab itself — keep your parts catalog, purchase orders, and job parts up to date and the numbers follow.
Download a CSV for your accountant¶
Click Download CSV to export the whole report for the selected year — ending inventory, COGS, purchases, and the per-supplier breakdown. Hand it to your bookkeeper or accountant, or file it with your year-end records.
A note on ending inventory timing¶
Ending inventory on this tab is your current on-hand value at cost. That's accurate when you're filing for the year that just ended. For an older year, the on-hand value won't match that year's December 31 figure — point-in-time historical valuation is a separate, future capability. The purchases and parts-consumed figures are always scoped to the tax year you select.
Why is COGS zero?
No parts were recorded against jobs in the selected year. COGS here is the cost of parts your team used on work — make sure parts usage is being logged on jobs.
Why is a received purchase missing?
A purchase shows up once its purchase order is marked Received or Closed with a receive date in the selected year. Open the order and confirm its status and receive date.
Can I change the tax year?
Yes. Use the Tax Year dropdown at the top of the tab — the report and the CSV reload for the year you pick.
Does this replace my accountant?
No. It organizes your inventory data so the COGS portion of your return is faster to prepare. Your accountant carries forward beginning inventory, chooses the method, and files.
Related guides¶
- Parts catalog — set each part's cost, which drives inventory value and COGS
- Purchase orders — receive supplier orders so they count toward purchases
- Suppliers — manage the suppliers your purchases are grouped by
- Reports & audits — inventory valuation, movement, and stock reports