Why has a Re-cost Journal synced to a COGS account?
FollowRe-cost Journals will be created in Xero if additional costs have been added to a receipted Purchase Order (PO), but the receipted stock has already dispatched on a Shipment. As the additional costs added to the PO has retrospectively increased the Landed Cost and therefore Average Landed Cost (ALC) of the receipted stock, this increase needs to be accounted for in any Shipments that have been dispatched in the time between receipting and completing the PO. This results in a Re-cost Journal exporting to the Cost of Goods Sold (COGS) account in Xero, rather than the Stock on Hand (Current Asset), as the stock (and it's value) has already sold.