We activated Shipped Not Invoiced account for our Sales Orders and it is now causing us problems.
We have two entities. Entity A buys from Entity B and sells to end customer. Entity B sells to Entity A and sells to other customers.
When Entity B sells to Entity A - it should hit account 50110 - COGS. When Entity B sells to any other customer, it should hit 50940 - Finished Goods COGS.
We had set this up by assigning COGS based on item class, which was set to 50940, but in the customer record for entity A we set the COGS account as 50110.
However, now that we have started using a Shipped Not Invoiced account, the system seems to ignore the COGS settings per above. All shipments are flowing to 50940 and is no longer considering the configuration above?
Is this a known issue? Does the Shipped Not Invoiced functionality prevent you from specifying the COGS accounts at the customer records levels? Could my set up be wrong somewhere?