I apologize for the delay. I hope I can explain this enough to get the help I need. I am in accounting trying to help the purchasing manager understand the process. There are a couple of things going on here that I just can't wrap my head around.  To explain what I have going on, take any item entry, as the one you did a walk through in your previous post on how to enter.  In ALL inventory item entries that have been entered since this business opened 2 years ago, the COGS account is "Purchase-Cost of Goods Sold" and the Income account is "Purchase-Cost of goods sold". (first attachment) In my accounting mind there is no way this is correct.  The end of the year adjustments are mind boggling.  This is going in and out of the same account?  Shouldn't the income account be specific?  I know this is incorrect, but explaining and finding the fix as in what income account to post to is my issue.  I am proficient in accounting but I have no experience in inventory management or item entry.  We are a manufacturing facility,  jobs (units we are manufacturing) are numbered, an item is then created with that job number. All inventory and non inventory items are listed "within" the job,  however, this main "job item" is what is entered and billed on the customer invoice. (second attachment) The inventory and non inventory items are not listed separately on the customer invoice, only the main job. In this job number item entry, the COGS account and Income account are correct.   But in the actual inventory items they are not. I AM SO CONFUSED!!!!  I have never dealt with a system that did not put items to inventory and then bill those items out on the invoice to the customer which then relieved inventory.  That is not the case here and maybe why she was originally taught to do the entries this way??