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.