Thanks for the follow-up, jrfarrow. Allow me to share additional details to guide you further.
When Inventory is enabled, the COGS account will increase when inventory items are sold. This will show on your Profit & Loss report and not on the Balance Sheet.
When the Inventory feature is turned on, the COGS account will increase once the item is sold. However, it will only be reported in your Profit and Loss and not in the Balance Sheet.
Additionally, any changes to COGS or inventory items will not directly impact your Accounts Receivable balance. The A/R account pulls from sales transactions like invoices. It is important to note that COGS is an expense account, while AR is an asset account, and they are not directly related.
You can read more details about this here: Understand Inventory Assets And Cost Of Goods Sold Tracking.
To get to the bottom of the discrepancy you're seeing, I suggest contacting our QuickBooks support team directly. They can take a closer look at your company file to determine what might be causing your A/R balance to fluctuate incorrectly.
Here's how to reach out to them:
- Go to the Help menu and select Contact Us.
- Click Contact Us at the bottom of the pop-up window.
- Type in a short description of your concern and click Continue.
- Log in to your account and select between Chat and Callback.
Let me also share a couple of articles in case you need more information and resources when tracking inventories in QuickBooks:
Please don't hesitate to reach out to the Community again if you need anything else, jrfarrow. We're available 24/7 to answer questions and help make sure you get the support you need.
