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When a cost of labor or supplies is included in Assemblies, it makes an entry reducing the COG when the Assembly is built. I think it should only make an entry when included on a customer's invoice. Why is this happening? Our COG is all out of whack!

 
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Re: When a cost of labor or supplies is included in Assemblies, it makes an entry reducing the COG when the Assembly is built. I think it should only make an entry when included on a customer's invoice. Why is this happening? Our COG is all out of whack!

That is probably correct.

I am guessing that the production payroll labour cost is being posted to the CoG-Labor account you refer to.

If so then the Assembly function is (correctly) removing the expense and absorbing it into inventory asset cost for that item.

When the item is sold there will be single CoG-Goods expense created that includes the labour previously absorbed.

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