Bulk NIL transactions in COGS accounts

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Shannon Sciuto
Shannon Sciuto Member Posts: 98
Hi All, 

My client is using ReckonAccounts Hosted.  For every 1 normal purchase transaction there are 10+ invoices with a $0.00 value in the Cost of Goods Sold account. 

It seems to be linked somehow to the purchase items.  It is setup so that when an item is purchased, it goes to COGS, when sold it goes to Sales.  BUT... when the item is sold, it also seems to created a nil transaction in the COGS account. 

Can anybody tell me why this is and how we can stop this? 

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  • Desleigh Brooks_7656143
    Desleigh Brooks_7656143 Accredited Partner Posts: 5 Accredited Partner Accredited Partner
    edited November 2016
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    If it is an inventory item there will be 3 accounts Sales, Cost of Sales and Inventory asset.  When purchased it will post to the inventory asset account, when sold it will post to the sales and cost of sales accounts.  If the item does not have a "cost" recorded on it and it has never been purchased before (to calculate the average cost) it will assume the cost is zero.  Hence the zero value to cost of sales when the item is sold.