Hello

I just started a demo version of Zoho Books and have a question on Cost of Goods Sold caluation

Step 1

Created item A -

Recorded purchase through bill including the qty.

200pc @ $100 per pc.

After making the purchase, the item is correctly shown as inventory asset in balance sheet and inventory summary.

Step 2

Sold 50pc @ 125 per pc.

Sales of 50pc has resulted in following:

Inventory reduces qty to 150. Correct

Income statement shows sale of 6,250

However, on the sale no corresponding cost of sales entry has been created.

Income statement shows of cost of goods sold as Nil

and balance sheet continues to show value of inventory at full value of purchase.

It seems like I have missed something. Its extremely basic step. Would appreciate help