I ran the inventory report and noticed that purchases is not shown in the inventory cost on the profit and loss account
Purchases are initially shown in the BS - Inventory On Hand account and don’t get transferred to Inventory Cost account until they are sold.
Once sold - are you using Cash or Accrual basis - if Cash basis then sales/inventory cost won’t show in the P&L until paid. If Accrual basis, can you show screenshots of the inventory report and the inventory cost which will illustrate your point
1 Like