On checking Profit & Loss statement, note that certain product purchases not appearing against the COS a/c as shown on the item card. Find that they're showing in inventory instead. Can someone suggest what error I've made in setting up the item card? If I enter a purchase (service) I can enter the correct COS a/c but when I enter a ITEM purchase the purchase (sometimes) goes against the Inventory account
Hi greened
This is normal when you use 'I Inventory" and the Item Profile has been set up correctly. When you Purchase, the value of the goods gets added to the Inventory account. Then as you Sell, the average cost is used to calculate the COGS and deduct this from the Inventory Account. Once all the items are sold, the balance of the Inventory account will be nil, and the full cost the the purchases (less GST) will be in the COS account.
If you are not familiar with using 'I Inventory', I suggest you look up some of the many Support Articles about inventory in the Support section.
Regards
Gavin
