Inventory items sold at no cost

I have a small problem, when issuing a sales / purchase order, lets say I receive / issue free items for a bulk purchase (lets say 1 pcs free for every 50 pcs) will it affect the inventory.

Especially when performing a sales order. will it affect the inventory if i issued free goods?

Yes, it will obviously have effect on inventory.

Inventory items sold at no cost will decrease your inventory by quantity sold and cost price of those sold items (even if those items were sold for $0)

Thanks for the response mate.

I did an experimental transaction where i made a PO and received the stock of 50 pcs with an additional of 5 pcs for no value (100% Discount), it saved all the 55pcs on the inventory, then i made a Sale, for the same number of items, 50pcs cash and 5pcs with 100% discount - The inventory successfully deducted the number of items sold when i check the inventory section - but in the summary dashboard under the “Other Assets” Panel the inventory on hand displays a minus value (of a value of 5 times when calculated)

How can i overcome this problem?