Hi,

If the system is set up for 'average' costing, then the COGS when recording a sale, Bill of Material, or Build from Item Assembly, will be the (weighted) average cost on record for the items on hand in that location. 

If the system is set for 'FIFO' then the COGS will be the sum of the item cost value(s) from the oldest cost pool(s).

If the system is set to allow negative inventory, then it will depend on what order the entries were made, entering a sale before purchase, and / or recording adjustments will cause bizarre results.

To check the COGS calculations came from, I usually run an 'Inventory Transaction' report for the item.  Use the default sorting order, which is the order transactions were entered.  (Choosing a sort order will do the calculations in transaction order, then shuffle the results into nonsense)

Once you have the report, open in Excel and you can calculate the per-item value of each transaction and the average cost with a simple formula.

I hope that helps, please post back!

Randy Wester

Thank you Randy.... changing to FIFO made the difference.  I appreciate all your help !!!