When a purchase of inventory is made, 4 accounts are hit: Inventory A/P Purchases Direct Cost Applied When the items are sold, 4 accounts are hit: Inventory A/R Sales COGS In this case, the COGS is automatically calculated and posted to your COGS account. The COGS posted by NAV is ALWAYS correct. Don't assume otherwise. Typically, when a CPA (Certified Public Accountants) report COGS, it's calculated and displayed based on the following formula: Beginning Inventory + Purchases - Inventory...