Inventory tracking is on but when I buy inventory it puts it on BS and P&L as cogs

Thanks for posting your question in the Community, @Anonymous.

I'd be glad to help provide some clarification about inventory tracking and how QuickBooks handles inventory assets and COGS.

When setting up your first inventory item in the inventory list, QuickBooks automatically adds two accounts to your company file's Chart of Accounts. 

• Inventory Asset- Other Current Asset 
• Cost of Goods Sold(COGS)

Recording a purchase in QuickBooks will show as COGS in the P&L report and Inventory Asset in the Balance Sheet. Let me route you this helpful article for more information: How to set up Inventory and tracking.

Let me know if you have additional questions about inventory tracking. I'm here to help however I can.

Assuming your items are set up right and the account types are correct for each account field on the inventory items, then...

This happens when you have oversold an inventory item below a 0 Qty balance and then subsequently purchase more of the item, but for a price above or below the average cost.

The GOGS you'll see as a result of the purchase in this case is an adjustment for the difference between the estimated GOGS added to the sale when the Qty went negative and the actual GOGS that are later a result of the purchase for a different price.

This is basic stuff that QB has done since it had inventory, which I think was added in 1998 (if I remember correctly.)  Not sure why Intuit doesn't seem aware of it.