@Christie IN wrote:
Hello, I have a client that is on a cash basis. However, they purchase inventory in a way that they do not pay for it until either it is sold or after 365. What would be the best way to account for this?
QB is accrual based accounting, and only reports on cash basis
enter the bill for inventory, that stocks the item in accrual. Then it can be sold/used.
In a cash based profit and loss, the cost of what was sold if not paid for will NOT show in COGS
So in cash based reporting that sale of an unpaid inventory item is 100% profit
When the bill is paid, and the same P&L is run, COGS will show the value of the items sold and paid for
