Why a Build Assembly inventory item would be generating a Credit versus a Debit in Cost Of Goods Sold after it is built?

Hi there, User_1234.

Thanks for sharing a screenshot of the report. Can you tell us how did you open the Transaction Detail by Account report? We just want to make sure that we give you the right information and troubleshooting steps to help you sort it out.

Please add a reply to share more details. We look forward to it. 

Yes, thank you for the reply.

I went to: Reports -> Company & Financial -> Profit & Loss -> I expanded COGS (double click amount listed, see screen shot) -> this opened into Transaction Detail By Account. 

Joining the thread to share insights about the account on your report, @User_1234.

Thank you for sharing the steps in generating your report and the screenshots on how it looks like. Ideally, the COGS account increases after selling an item and not when building the assembly.

Moreover, I have here an article that discusses the details of your account while tracking inventory: Understand Inventory Assets And Cost Of Goods Sold Tracking.

On that same page, I've also found out the credit amount of COGS in an assembly is a portion of the items used while building. One of our members, @KarriW, discussed it and shared an example here: Build Assemblies and Cost of Goods Sold.

I'm adding this article with the topics that allow you to skip manual tracking and focus on making your own products: Track the Products you Manufacture in QuickBooks Desktop Premier, Enterprise, or Accountant.

If you have any other questions aside from building an assembly, please let me know in the comments below. I'll be here to lend a hand. Take care and stay safe!

Hi, I read through the links you sent, and it doesn't seem to be the same issue. It looks like my inventory is pulling correctly when we do a regular "Build Assembly," but that may be because the issue is only when the item is actually sold - which would be why the Build Assembly is showing a credit where there shouldn't be one on my Profit & Loss Transaction Detail by Account. 

Would there be any reason that a Build Assembly would ever show a credit if it is pulling correctly from inventory? Nothing about the Inventory Assembly Items used to make the "Build Assembly" are negative. 

Hello there,@ User_1234.

I have some ideas for build assembly in QuickBooks Desktop that I can offer.
 

When you sell inventory items, your Cost of Goods Sold will be affected (COGS). QuickBooks will debit the COGS account and credit the Inventory Asset account. As a result, the Transaction Journal and Transaction Detail by Account reports for your build assemblies show the same information.

Please visit this article for more information: Understand inventory assets and cost of goods sold tracking.

You can also drill down into the transactions connected with your build assemblies by double-clicking on each sum. Here's a photo you can view for your convenience:

If you ever encounter any inventory issues, read this article for a guide: Fix negative inventory issues in QuickBooks Desktop.

Feel free to comment back if you have other concerns with QuickBooks or inventory. I got your back. Have a great week!