Hi there,
I have the same issue where TurboTax does not seem to allow negative COGS.
My business [accrual] had more returns/refunds (for 2019 sales) than 2020 sales due to the pandemic.
So Cancelled Sales (from 2019) > 2020 Sales
and Cancelled COGS (from 2019) > 2020 COGS
For example:
End of 2019 Inventory = Beginning of 2020 inventory = $100
Purchases in 2020 = $75
End of 2020 inventory = $200
The remaining $25 was the (Cancelled COGS - COGS) which ended up back in inventory due to returns.
I believe this should result in a -$25 2020 COGS in order to satisfy the equation.
