Why is there a negative line item in my cogs?

ES4 · ‎September 30, 2020

On my cogs, it has included an bill to a vendor (accounts payable account) for -$14.77. The actual bill was $230.00. This was a invoice to a customer where we were able to go ahead and invoice all 4 inventory items to the customer while we waited on 1 item on backorder. Is this somehow adjusting for the inventory cost since we didn't have it in stock? Thanks

BigRedConsulting · ‎September 30, 2020

This happens when you sell an inventory item into the negative.

When you do that, QB guesses what the COGS should based on the prior average cost.

In turn, then when you buy more of the item at a later date, if your cost is different QB adds a COGS adjustment to the purchase.

ES4 · ‎October 01, 2020

Thank you BigRedConsulting.

Next time, if I go ahead and receive the item "without a bill", will this prevent this from happening in the future?

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Why is there a negative line item in my cogs?

Why is there a negative line item in my cogs?

Why is there a negative line item in my cogs?

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