I posted a Goods Receipt PO which inculded quantity 3 of an item that is $77.60.
Normally, this should create a Journal Entry where Inventory gets debited $7760x3=$232.80 and the allocation Account (GOODS RECEIVED NOT INVOICED) on the credit side for the same amount (232.80).
However this time the resulting JE
(1) credited GOODS RECEIVED NOT INVOICED for the expected amount (price x quantity = 232.80)
(2) also credited COGS for $1472.37 and
(3) debited inventory by $1705.17 (the expected $232.80, plus the unexpected $1472.37).
Why is the $1472.37 included in this transaction at all - it should have only credited GOODS RECEIVED NOT INVOICED and debited INVENTORY both by $232.80.
We use FIFO. We do allow negative inventory, however this inventory item was not in negative quantity.