Thank you. That is helpful. COGS now shows up on the P&L but values seems to be reversed. Here's the scenario - I create a new non-inventory item for a generic part, say a laptop screen, I do not check the box for "this item used in assemblies or purchased for a specific customer" and I leave the price empty since it will vary from screen to screen and I assign it to the Purchases - Hardware for Resale - Cost of Goods Sold account. Then I go to Vendors, Enter Bill, and I purchase the item for $35.46. I then create an invoice, charging $60 labor and add the item to the invoice, charging the customer $45 for the item. Then I receive payment for the invoice and run a P&L. My P&L now shows consulting income of $60, and reports COGS under the category "Purchases - Hardware for Resale" where it reports a Bill in the amount of $35.46 applied to Accounts Payable and an Invoice for the item under Accounts Receivable for -$45. This results in it reporting Total Purchases - Hardware for Resale as -$9.54 and Total COGS as -$9.45. Oddly it still reports gross profit correctly as $69.54. Then I purchase another screen using the same item and enter a bill for it for the cost of $69.99 and then apply it to a new Invoice, charging $60 labor and billing the customer $99.99 for the part, and receive payment for this invoice. It now reports Total COGS as -$39.54 and gross profit as $159.54 Again, gross profit is actually correct but unless I'm misunderstanding how COGS works shouldn't the COGS value be $105.45, my actual cost for the two parts, with $39.54 being my profit from what I have sold?
