What would I put for the "cost of sales" in a profit and loss statement if I don't have any sales? I have purchased a lot of inventory, but as of now, I don't have any sales. Do I put 0 or a negative number? Or do I put the cost of inventory in the "Operating Expenses" section?

1 Answer 1


Inventory costs would go into the Inventory account; which is not on the P&L, it is a balance sheet account. Once a sale is made, the cost of that sale is posted to Cost of Sales and offset against your Inventory balance.

So in your case, the Cost of Sales will be $0.

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