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Zero-price inventory items do not add to COGS on the cash basis P&L

Premiums are prizes, bonuses, awards or samples that you give to (1) induce employees and representatives to sell and (2) induce customers to buy. You may include these items on your invoices with a zero price. If you do, your cash basis P&L does not include the cost of these inventory items. If you have an inventory item on an invoice with a zero price, it does not affect the COGS account on a cash basis Profit and Loss.

Why is this happening

This issue will occur if:

  1. Your invoice contains an inventory item with a zero price.
  2. You receive payment from your customer and link the payment to the invoice.
  3. You run a cash basis Profit & Loss (P&L).

When the invoice is paid, the payment is allocated to all of  the items on the invoice, based upon the item price.

  1. For a zero priced item, no payment is allocated.
  2. The item is not recognized as paid.
  3. Even though the Invoice is Paid, the cost of the item is not recorded to COGS.
How to fix it

 

KB ID# SLN64472
12/5/2016 12:39:00 PM
QYPPRDQBKSWS03 9138 Pro 2017 33d9b2