john-pero
Community Champion

Banking

This is an old post, but it popped up because of some background changes.  To answer @marylanai inventory purchased is eventuay BOTH an asset and COGS.

 

When an inventory item is purchased it becomes an Other Current Asset, you have zero expense until you sell it. When you sell, and record income, is when it is posted to COGS (Cost of Goods Sold), until you sell you have no cost