"Expenses For Cost of Goods Sold" unable to understand
Hello, I am new to Zoho books and trying its demo version, since my requirement is to maintain an inventory, p&l statement and gst filing, for these i found Zbooks compatible.
However, i am finding difficulty in understanding some terms,
1. When i sold an item i added an invoice. At the same time an "Expenses For Cost of Goods Sold" is added under expenses on its own, I am finding it very difficult to understand this term. Because when i check the profitloss statement, i can see the total in negative, i thought it is the cost of items that i purchased but again this cost is not matching the purchase price.
Screen shot attached.
The purchase price of items is Rs 220/ piece + 12% tax, and 8 pieces have been sold.
Kindly, help me in solving the problem.