Hello,

I'd like to get some help with understanding how to record inventory purchases and then converting it to COGS after a purchase is made. 

When I make inventory purchases, I understand that these should be recorded as an asset under the Inventory chart. When categorizing these purchases in my transaction history, should I "record as transfer" to inventory or "categorize" as inventory? Is there a difference between the two?

Then, after I make sales, I believe I'm supposed to create a journal entry that credits the cost of goods from the Inventory account and debits the cost of goods from the COGS account. Is this also correct?

Thank you!