@krissenior
OK, so what I think is happening is that QB is posting that invoice as a reduction in COGS because you are letting inventory go negative. You should never let your inventory go negative. In your report (which I understand is subsequent to the invoice in your original post), you were oversold by 13 units on 6-22-23 and again oversold by 6 units on 7-6-23. I would guess you were negative on that item previous to this as well. When you sell a product that you do not have in inventory, QB still reduces your inventory and increases your COGS by the cost of the items sold. However, that's an issue because you are expensing the cost of the item sold as of the invoice date but, since you never bought and paid for that item, you should not be recording the expense. So, QB will make adjustments to reduce your COGS by the amount overstated as a result of overselling the items. If @BigRedConsulting is lurking on this thread, she/he understands the adjustments that QB makes much better than me.
The only way to prevent this is to make sure you're not letting your inventory go negative. If you Google 'negative inventory in quickbooks online', you will find all kinds of results talking about why you don't want to let inventory go negative. If you take pre-orders, you can convert a PO to a bill or, even better, record the customer payment as a credit to be applied to the invoice when you receive the product in stock. Hope this helps.
