Great job activating the Inventory tracking feature and generating transactions for the items, Rita. I can address your queries about its cost and provide a way to view the average.

The cost is determined by the item's purchase history and is calculated from the beginning to the current date. As a result, it won't update after creating purchase orders and bills because it depends on the amount you've entered on the Products & Services page. In this case, you can manually adjust or add the cost for each item.

You're correct that the system will only update the Qty on hand after recording those entries. Moreover, it will display the breakdown of associated accounts in the Chart of Accounts, illustrating the transactions that affect the item.

Furthermore, run the Inventory Valuation Detail or Inventory Valuation Summary to observe the current average cost of an item and understand how they are affected. I'm adding some screenshots below:

Check out this material to instantly see your best sellers, the on hand, cost of goods, and more: Set up and track your inventory in QuickBooks Online.

Here's an article explaining how tracking items impacts your business reports: Impacts of inventory tracking on the Balance Sheet and Profit & Loss reports in QuickBooks Online.

It'll be my pleasure to help you manage your business and the movement of items to streamline production and maximize profits. If there's anything else I can do for you relating to sales or inventory, add them to this thread. I'll be right back.