Thank you very much. Is there a benefit to distinguishing the difference between how much of inventory 'used' was actually sold/used to build assemblies and what was due to shrink such as outdated milk that is thrown out?
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I am new user of Quickbooks and not at all accounting savy. I am going to try and elaborate on the situation. In my chart of accounts I have: Inv Asset - Other current asset; Sales - Income; Cost of Goods Sold - COGS; Inventory Adjustment - COGS. I have been entering my bills in QB and applying the inventory to COGS-COGS account. I realize now this is very wrong as the COGS account type is really an expense. When I view my Chart Of Accounts there is not Value$ for any of these 4 account types. On my P&L the Sales-Income is listed as well as the COGS (which is really all my inventory purchases for resale). The difference leaving the GP. At no point does the P&L or Balance sheet note the value of the inventory assets that were not sold and remain on hand to be sold. Also, throughout the month I have to write off inventories due to damage or shrink. I would appreciate help in understanding how to enter this transaction so it is applied to the inventory asset account........So lets assume that: $20,000 Sales-Income - $18,000-Purchases - $2000-GP $1000-Inventory Value and $1000 for Inv Adjustment. I use QB POS to record purchases and track inventory value. I am not using QB financial software to list the inventory items purchased. I just enter the bills in that software Can anyone tell me how to record accurately? I am sure once I get this the first time I will be able to grasp for future. HELP APPRECIATED.
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