Why am I getting a "Missing COGS account..." error when creating a PO Invoice?

If you're getting this error when creating a Vendor Bill or Purchase Order Invoice, take these steps.

The following message may appear when creating a Purchase Invoice for a Drop Ship PO:

"Missing COGS account for drop shipment line number 1, Purchase Invoice was not created"

The expense account for Drop Ship PO lines is selected from the original sales order. Use the following procedure to make sure the account is set properly:

  1. Click View PO on Purchase Invoice toolbar
  2. Click View Order on Purchase Order toolbar
  3. Scroll down to the line number from the popup message
  4. Look for the the Product Class for that sales order line (bottom-right column)
  5. If the Class is blank, be sure to select a Product Class and try the Purchase Invoice again
  6. If the Class was set, open Configuration Management
  7. Click Product Class in the Inventory folder
  8. Make sure the COGS GL Acct / Seg is selected for that product class

NOTE: COGS accounts are typically selected by Product Class, but you can review the Sales / COGS section of Configuration Management if you’re not sure.