Hi Rasa-LilaM
- I'll try and explain the issue again...
I buy 10 products from a manufacturer at 1.00 ea.
I log the product using QBOs 'Products & Services' functionality - I enter a Quantity of 10 and an Initial Value of 1.00 (what I paid to have the product manufactured).
I log the manufacturer's Bill under Costs Of Sales/Manufacturing.
QBO automatically enters a Stock Assets value of 10.00 (10x products @ 1.00 ea.).
I now have stock numbers (10), stock assets value (10.00) and the bill (10.00).
- So far, so good - this is all correct and working as expected.
The problem starts when I create an invoice for my products.
Let's say the invoice is for all 10 of my products - QBO automatically creates an entry in Cost Of Sales/Cost Of Sales for the Quantity x Initial Value i.e. 10.00
Now I have a total Cost Of Sales of 20.00 instead of the correct value of 10.00 (Costs Of Sales/Manufacturing (10.00) + Cost Of Sales/Cost Of Sales (10.00) = 20.00)
You see the problem? This is a very simplified example - but for my figures it means I'm looking at 50K of COS instead of 25K. This also means the Income figure on my PL is in minus figures!
- As you've suggested, for PL - I can run it as Cash. That works.
But for BS - if I run it as Cash, I get the right Income figure from the Cash PL but it doesn't take in the current Stock Asset value from the Product Quantities.
If I run the BS as Accrual - I get the right Stock Asset value - but I get the wrong Income value because it's taking the wrong Cost Of Sales value,
I hope that explanation is clearer...
