Thanks for joining the conversation, @traviswine,
I can add a bit more about the inventory management in QuickBooks Desktop and how it affects the Inventory Assets and COGS accounts.
When you set up the inventory item you have the option to enter the item Cost. Here's how:
- Click the Lists menu.
- Choose Item List.
- Locate your inventory item and double-click it.
- Fill out the Cost field, under Purchase Information. Enter the cost of the item when you purchased it.
QuickBooks uses the weighted average cost to get the value of your inventory and the amount debited to the COGS account once you sell your inventory. You can check this article to know more about inventory tracking: Understand Inventory Assets and COGS tracking
Let me know if you have any more question about inventory management. I'll be glad to help. Have a good one!
