Thanks for following on this thread, edc9500.

When you turn on the Inventory feature in QuickBooks, it automatically adds the Inventory Asset - Other Current Asset and Cost of Goods Sold (COGS) - Cost of Goods Sold. By the time you set up an item, select an income account to easily track the items sold.

Also, income is realized when there’s a sale for the product (recorded on an invoice or sales receipt). QuickBooks then decreases what’s on hand by the amount on the transactions. For more insights on how QuickBooks handles your inventory and accounts associated for an item, see the following guides:

• Track the products you manufacture
• Understand inventory assets and cost of goods sold tracking

If you have any clarifications or other concerns, click the Reply button and post a comment. I’ll be right here to help you. Have a great rest of the day.