simple inventory question

[wireless]

Hello,

I understand that gnucash does not have inventory systems. However, we 
occasionally sell to (tax exempts) agencies a few items, maybe once a 
year.  So a few years back when the gnucash was setup for this
small business, we created an account and called it inventory under 
COSTS. When we have received a PO from a company to purchase something 
from us, we go out an buy it. Inventory is never kept, it only  exists 
in a temporary mode.

There was probably a better way to do it, but, this is what I did; 
purchased (item A) 3 times  at a cost of 1K  each and coded the credit 
card transaction to the inventory account: [COSTS (Expenses) Inventory]
The three times we sold Item A and received a check payment for 2K each 
time, it was linked in the check book to [Revenue (income)  exempted 
sales]. So (3) one K expenditures and (3) sales events of 2K for a total
sales of 6K.

So the account for inventory shows 3K in 3 items, like we are still are
in possession of these items. This seems like a problem?   The first 2 
sales event occurred in previous tax year 2012. For tax year 2013, we 
had this sales event once. The inventory show 1K in inventory  under
Expenses (Costs) Inventory. When I go to the master accounts listing 
file and click on "inventory" I see all three purchases for a total of 
3K. Likewise in the account Revenue (income) the exempt sales shows 6K. 
I'm not sure this is a problem? If so, how would I fix it?


For use we need to somehow link the inventory account so it shows a zero 
balance, as the inventory is gone (has been sold); or at least to me 
this seems how it should be. I'm not an accountant, so maybe I just
need an education on gnucash, and some helpful pointers?


Comments and ideas are most welcome.


James