Yes, should always be the same - Qty owned x Avg cost = Total Cost. The total at the base of the Total Cost column matches the BS Inventory on Hand account balance.
I encountered this anomaly a short while back also. As you found when the on-hand was a negative quantity I didn’t get my COGS.
Once I adjusted the inventory back up to zero - magically the COGS entry appeared.
Typically average cost systems that allow negative will book the COGs and drive the on-hand inventory Value negative using the current average for the item.
The issue comes when you receive the ‘missing’ quantity back in.
- lets say you ship 5@25 average when you have one on-hand. You end up with -4 and -$100 inventory; You now receive the missing 4 @ Cost of $30 each. Inventory comes back up to zero on hand but the full $120 can’t be put into inventory as we can’t end up with zero quantity and $20 of inventory value. So then that $20 needs to be expended - average cost variance.
It seems Manager avoids that issue by simply not booking the COGS entry until after the receipt.
I’m ok with either approach, but if the entry isn’t going to be booked by the system there should be a warning that there are inventory transactions that could not be booked due to… Something to give visibility to the need to address the issue. Since no entry is booked at all, the typical Manager issue flag - is what’s that in suspense doesn’t help.
Thoughts?