I'm new user in QBO world, and just in a phase of setting up Accounting features and other.
Now Inventory and CoGS is on the menu.
I open new product under Inventory type, and assign :
Inventory asset account : Inventory Asset
Income account : Sales of Product Income
Expense account : Cost of Sales.
When I post a Bill , the net amount is posted on Inventory Asset, shown in Balance Sheet.
When I post a Sales Invoice , Sales of Product Income is recorded.
But Inventory Asset Balance remains unchanged , as well as Cost of Sales !
There are some "movements" when I run report on that Product , from Products and Services , but movement on GL code Inventory Asset and Cost of Sales is zero (0.00), instead of decreasing Inventory Assets and increasing Cost of Sales.
Can someone please help me understand what am I doing wrong in setting up the Inventory products ?
Many thank in advance.
Solved! Go to Solution.
Welcome aboard QuickBooks Community, Old nan!
I'd be glad to assist you update your product setup, and get your report corrected.
Upon checking the screenshot you've shared, it shows that your Inventory Starting Values is zero. This is the reason why both your Inventory Asset Balance and Cost of Sales are zero.
Let's edit the product's inventory starting value by following these steps:
1. Click on the Gear icon, and choose Product and Services.
2. Find the inventory product that you intend to edit.
3. Under the ACTION column, click Edit.
4. Under Quantity on hand, click Starting value.
5. Click Got it!
6. Fill out the Initial quantity on hand as well as the Initial cost.
7. Click Save and close.
To learn more about managing your inventory, check out this article: Inventory Overview and Setup.
Let me know if you have any other concerns. Have a blissful day!