We sell physical products and use Quickbooks to track the quantities. The stock asset account is record, the unit sales price is also recorded on QuickBooks and linked to our "Sales of Product Income" income account. The unit cost for the product is likewise recorded on QuickBooks and linked to our "Inventory Cost of Sales -COS" expense account.
Each time a customer buys a product and the invoice is paid, I noticed that QuickBooks records the income under the "sales of product income" account but also automatically records the inventory cost of sales - COS expense and reduces the stock asset.
While I want the software to record the sales of product income and decrease the stock asset automatically, how do I stop quickbooks from recording the cost of sales on every invoice based on the product's unit cost in the product information section?
We record the inventory cost of sales after every bill from our supplier and this is a problem because the cost of sales is being recorded twice. i) After the supplier's bill is recorded, and ii) After every sales invoice is paid (calculated automatically based on the product's unit cost).
I have tried adjusting the unit cost in the product information section to 0 hoping it will solve this problem but the cost is still being recorded based on the old data.
