Inventory Cost (COGS) not recording per sale, only flushing when inventory reaches zero.

Hi Team,

I am experiencing a specific issue with Inventory Valuation and Cost of Goods Sold (COGS) in Manager.io.

The Issue: Even though I am using the Accrual Basis for reporting and have no Delivery Notes or Goods Receipts enabled, the system is not recording the cost of goods sold at the time of each sale.

Instead, the ‘Inventory - cost’ account stays at zero while I make partial sales. The system only seems to ‘flush’ or record the total cost once the inventory quantity for that specific item reaches zero.

Testing performed:

  1. Dates: I ensured the Purchase Invoice date is prior to the Sales Invoice date (no negative inventory at the time of sale).

  2. Item Setup: Each item is a proper ‘Inventory Item’ with the correct ‘Inventory - cost’ expense account linked.

  3. Inventory Value Summary: The report shows ‘Zero’ for Cost of Sales even when units have been sold and ‘Average Cost’ is visible in the Inventory Items tab.

  4. Basics: I have confirmed I am not using Inventory Kits or Production Orders for these tests.

Example Scenario:

  • Purchase: 100 units @ $10 each. (Total $1000)

  • Sale 1: 50 units sold. → Result: Sales recorded, but COGS shows $0.

  • Sale 2: Remaining 50 units sold (Qty becomes 0). → Result: Suddenly, the system records $1000 as COGS.

I want the cost to be recorded progressively (e.g., $500 COGS after the first sale). Could you please advise if there is a hidden setting or a data integrity issue causing this delayed cost recognition?

Thank you.

Hi everyone, I’m still waiting for a solution on this.

I am using the Desktop Edition and the COGS issue is making my financial reports inaccurate. Does anyone know why the cost only updates when stock reaches zero?

Any quick help or guidance would be much appreciated as I’m stuck. Thanks!

@lubos

@lubos Please help & anwser just simple issue.
Thanks

Did you perform Inventory ItemsRecalculate action after the Purchase Invoice was entered?

If there is a positive number next to Inventory Unit Costs on the Inventory Cost Correction screen, it means the purchased inventory hadn’t been updated against the COGS table yet. This is why you don’t see COGS reflect on reports.

Always run Inventory ItemsRecalculate after every inventory purchase if you need the latest COGS.

Also, keep in mind Manager.io uses moving average for COGS.

Hi,

Thank you so much! Your suggestion worked perfectly.

I went to the Inventory Items tab, clicked Recalculate, and found the Inventory Cost Correction screen with the pending unit costs. Once I clicked Create, the COGS immediately reflected across my reports.

I didn’t realize that manual recalculation was sometimes necessary to flush these costs into the COGS table. I really appreciate your help in solving this mystery for me!

Best regards.