When you sell items from inventory, QuickBooks not only helps you fill in
the sales form quickly but also keeps track of how many items remain in stock
after the sale.
To do this task
When you make a sale, do one of the following:
If you will receive payment later, create an invoice.
If you received full payment at the time of sale and you track sales by individual customer or job, enter a sales receipt.
If you received full payment and you don't track sales by individual customer or job, enter a sales summary.
What happens after I record the sale?
After you enter a sale, QuickBooks does the following:
It increases your sales income by the amount of each line item.
It adjusts your cost of goods sold by the quantity sold multiplied
by the average cost of each item.
It enters a transaction in your inventory register for each item sold.
Note: As you sell items, QuickBooks assumes that you are reducing the value of your inventory by the number of items sold times the average cost per item. Thus, a sale does not affect the average cost.