Here is the Scenario.

Customer comes into store and purchases a product. Pay in full. After collecting enough customer orders we place an order and get all of our products at once. It is wine kits so it is easier to place an order for 30-40 than 1 at a time as well as easier then holding inventory.

In quickbooks when I enter the invoice it will charge:

Cash/AR XXXX
Sales XXXX

COGS XXXX
Inventory XXXX

When I finally receive the inventory then should I just put whatever my amount is for my order like this?

Inventory XXXX
Cash/Ap XXXX

Essentially it should offset right? I know it probably does not follow standard GAAP and that I should probably be doing unearned revenues until I actually get the product but it really fluctuates my income statements month to month then. I'm just curious as to what people think and if anyone has used quickbooks before that would be a huge help. It's Quickbooks Premier 2007.

Thanks to anyone who could help.