Hi Rustler! I have a similar situation at work.  My boss asked me to change the non-inventory items to inventory items so we can have our financial reports more accurate. But my question are :
1. Which cost of goods sold will post into the profit and loss if we create new items with an initial quantity and we start selling them? The one we enter as cost into the purchasing information section of the item?
2. Which cost of goods sold will post into the profit and loss when we start buying the item? does it calculate an average cost including the initial cost entered in the information section or just the real purchase costs?

3. If QB uses the cost entered in the purchasing info to calculate the COGs of items entered with initial quantity, does QB change that cost once a purchase is registered? 

I hope you can help me with my dilemma ;)

Thanks