When you add an inventory part to the item list QuickBooks looks for two accounts to associate with the inventory part what are the two accounts?

Thanks for your prompt reply, Constantine.

When you set up your first inventory item in the Product and Services page, QuickBooks automatically adds two accounts to your Chart of Accounts.

• Inventory Asset - Other Current Asset
• Cost of Sales (COS) - Cost of Sales

To track your COS, make sure to enable the inventory feature by following these steps:

1. Go the Gear > Account and settings.
2. On the left panel, click Sales.
3. In the Product and services section, select the toggle icon next to Track inventory quantity on hand.
4. Hit Save and then Done.

After the steps, add the inventory item in the Product and Service page. Here's an article for the steps: Add inventory products in QuickBooks Online.

Then, use the item when you create an invoice or sales receipt. Normally, the Cost of Sales account is only affected when you sell the inventory items. To view the affected accounts, you can run the Transaction Journal Report for the invoice/sales receipt.

Here's a sample screenshot of what it looks like:

.

To learn more about the process, you can read this article: Set up and track your inventory in QuickBooks Online.

For any additional questions or other concerns, please let me know in the comments below. I'll be right here to answer them. Have a good day!

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