Changes to COGS and average cost when selling inventory items not in stock
Legacy KB ID: 644
Question
What will happen to COGS and average cost if I sell inventory items not in stock?
Answer
When stock levels fall below zero (0), Reckon Accounts cannot calculate an Average Cost of Goods Sold.
When the same items are later purchased and entered into inventory, a COGS adjustment will be made from the bill (or cheque) to reflect the actual cost for the items.
When Stock levels rise above zero (0) the Average Cost of Goods Sold calculation will begin again with the cost used on that purchase.
Need more help?
Ask the Reckon Community at: https://community.reckon.com/categories/reckonaccounts
Or Log a Support Ticket: https://www.reckon.com/au/support/
