QBO COGS Accounting for Inventory Completely Wrong - Major Bug
I recently migrated to QBO from Quickbooks for Mac (July 2022). I have been doing inventory accounting since 2013 with Quickbooks for Mac and it has worked flawlessly. In QB for Mac, you can assign an inventory account, incoming account, and expense account to each item you carry in inventory. The same is true for QBO.
After the migration, I checked all of my items (now called "products" in QBO parlance). There are thousands, but all have the appropriate inventory, income, and expense accounts. All products are classified as "inventory."
After generating a couple of invoices for big sales today, I noticed the gross profit was way higher than expected. Upon closer examination, I realized that the products were being removed from inventory (from a quantity standpoint), but the dollar value remains in inventory and is NOT assigned to the proper COGS account . . . and therefore doesn't appear on my P&L. As a result, hundreds of thousands of dollars of sold inventory remains in the inventory account and has not been assigned to COGS.
I spent 1.5 hours on the phone with QBO support. I generated some test invoices for items still in inventory. They clearly have a FIFO cost in inventory, they are clearly set up as inventory items with the right accounts, but when I generate an invoice, the income appears on the P&L but not the COGS! The customer service rep agreed this is a software bug and has escalated it to "Tier 3" help, whatever that means.
This is a MASSIVE and unthinkable bug in one of the most fundamental accounting operations you can do with inventory. As a result, my P&L has been massively overstated and the inventory on my balance sheet is way higher than it should be.
Has anyone else experienced this issue? If it's a system-wide bug, I expect others have seen it. I am really taken aback that something so major and fundamental could be wrong with QBO.