I figured this out over the weekend.

I set up a new asset account called "Store Inventory". When I process a
purchase I classify the category as the "Store Inventory" asset account, and
then I do a transfer at the end of the month from "Store Inventory" to "Cost
of Goods:Purchases".

"Steve Schauer" wrote:

- quote -

I already have a POS system for my business that manages sales info, purchase
orders, reordering, etc.

Can I use Home&Business like this:

1. Checking deposits are "Sales".
2. Purchases (made from the checking account or a credit card account) are
"Inventory".
3. Periodically (once a month probably) I would enter an adjusting entry,
debiting "Cost of Goods" and crediting "Inventory".

Alternately, if Money requires it, I could categorize purchases as "Cost of
Goods" as they are made, and adjust them the other way (transfer from "Cost
of Goods" to "Inventory").

???????