inventory profitability report shows cost higher than the revenue

AI generated answer (using internal Slack threads):

The Inventory Profitability report showing cost higher than the revenue could be due to several reasons. One of the reasons could be the Cost of Goods Sold (COGS) on an invoice being counted as a cost towards a project. This might appear but then get reversed in job costing. If you are using the advanced project profitability reports, you need to exclude the inventory accounts as it hits both inventory and COGS, thereby zeroing itself out. Another reason could be the negative Quantity Sold for some items. This could be due to returns, cancellations, or adjustments that exceed the quantity sold. Lastly, the issue could be related to the Estimated Gross Profit on Sales Orders. If the Sales Order was created before the inventory was in stock, there would technically be no cost associated with the item when the Sales Order was created. A fix for this would be to edit the Sales Order and refresh the Cost Estimate Type for each line item. This would add the Estimated Extended Cost to each line item and create a proper Gross Profit. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******