I'm not following you very clearly. But I do think that since 2021 is your first year of business or your first year of dealing with inventory, you're most likely doing it wrong. I'll do my best to explain "how it works". Now you may know how it works. That's fine. But I'm still gonna "put it out there" to ensure we're on the same page.
What you pay for inventory is not deductible until the tax year you actually sell that inventory. It doesn't matter what year you purchased that inventory either.
Beginning of Year (BOY) Inventory Balance - This value is what "you" paid for the inventory in your physical possession on Jan 1 of the tax year. This balance "must" match exactly your End of Year (EOY) Inventory Balance of the prior year. If it does not match, then you have some explaining to do, to the IRS. Be aware there is "NO REASON" the IRS will accept for it not matching. If this is your first year dealing with inventory, then your BOY Inventory Balance MUST be ZERO. No exceptions. Doesn't matter if you actually purchased that inventory 50 years ago. In your first year the BOY Balance has to be zero. There is no other possible way to make it match your prior year EOY balance, since you did not report any inventory the previous year.
Cost of Goods Sold (COGS) - What "you" paid for the inventory you actually sold during the tax year. Again, it doesn't matter if that inventory was purchased 50 years ago. This figure will include what you paid for that inventory 50 years ago. This is the amount that will be deducted from your gross taxable business income.
End of Year (EOY) Inventory Balance - What "you" paid for the inventory in your physical possession on Dec 31 of the tax year. Again, it does not matter in what year the inventory was purchased either.
Here's 2 examples, with the first one showing the first year dealing with inventory, and the 2nd one showing the 2nd year.
EXAMPLE 1: Year one.
BOY Inventory Balance - $0
COGS - $5000. This is the amount that will be deducted from your gross taxable business income, so that you don't pay taxes on it.
EOY Inventory Balance $5000
The above example indicates you started the year with no inventory. Then during the year you purchased $10,000 of inventory, and sold $5000 of inventory. With this being the first year, when you actually purchased the inventory does not matter. You may have purchased at least some of it, 10 years ago. But since you sold $5000 of that inventory during the tax year, that leaves you with $5000 of inventory on Dec 31 of the tax year.
Example 2: Year two.
BOY Inventory Balance - $5000. Take note that this matches exactly the EOY inventory of the previous year.
COGS - $3000. This amount will be deducted from your gross business income so you don't pay taxes on it.
EOY Inventory Balance - $6000.
The above indicates you started the tax year with $5000 of inventory. Then during the year you purchased an additional $4000 of inventory, bringing your total inventory for that year to $9000. Then you sold $3000 of that inventory leaving you with an EOY balance of $6000.
