The Cost of Goods Sold (COGS) account is used for purchasing and selling items, vlphall.
Purchasing Product A will debit COGS, thus showing a positive amount in your Profit and Loss report.
Selling the said item will credit COGS. It will offset or cause negative amount in the report.
You can view the Transaction Journal of your invoices or bills to verify that COGS is displaying the correct amounts in your Profit and Loss report.
- Open an invoice or bill.
- Click More at the bottom of the Invoice or Bill window.
- Select Transaction journal.
It's also best to reach out to your accountant about this. They'll be able to provide you more options in reviewing your reports.
Let us know if you have further concerns.
