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New to quickbooks, but ran across something I don't understand.
I bought Product A for $5 and have it as a bill and an inventory item
I have a Sales Receipt for Product A where I received $20 for the sale.
When I go into the transaction journal for that Sales Receipt, the COGS account (and inventory account) both show a change of $0
But, when I look at my Insights under home, I see it under COGS.
Further, if I go back to the bill for Product A, and change it to $1000, the COGS in Insights also changes to $1000.
However, the transaction journal for the sales receipt continue to show changes of $0.
Go to Solution.
It is the difference between cash and accrual accounting
in cash accounting (reporting) the item on the bill does not count until it is paid for. When you pay the bill, that cost will move to COGS
When you get strange stuff like this always check the reporting basis, QB is accrual accounting and only reports on cash basis
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