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Adding inventory - same product, different cost

Forum|Forum|6 years ago
September 27, 2019
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I cant seem to find clarity on this specific scenario - the best I have found is under the FIFO information but not clear....

Currently have inventory loaded of medical wristbands eg: 10 bands @ R50 ea

New stock arrived and I want to load additional 10 bands but these were at a R60 cost each

If I use the edit function on the Products and Services Inventory list it only gives me the option to adjust the original starting value.

Is there another function to load new stock at a different cost? Thanks

QuickBooks Accountant Online

Best answer by Rustler

In QB you increase stock by entering a purchase of the item, with qty and total cost

that stocks the item purchase with that cost for that qty, FIFO means average cost per purchase, and the first purchase cost is posted to COGS when you sell one.

Insure that in company settings you turn on the items table and purchase orders.

Then when you enter an expense or bill, about half way down the left side is a title "item Details" click that and a table opens where you can select the item, qty and item total cost for purchasing inventory

RustlerAnswer

In QB you increase stock by entering a purchase of the item, with qty and total cost

that stocks the item purchase with that cost for that qty, FIFO means average cost per purchase, and the first purchase cost is posted to COGS when you sell one.

Insure that in company settings you turn on the items table and purchase orders.

Then when you enter an expense or bill, about half way down the left side is a title "item Details" click that and a table opens where you can select the item, qty and item total cost for purchasing inventory

J

jtatlantic

FIFO is NOT the average cost, the average cost is the average cost. To anyone reading this new to accounting, FIFO and avg. costs are two different things.

M

Malcolm Ziman

"Currently have inventory loaded of medical wristbands eg: 10 bands @ R50 ea"

You should not enter the qty and cost in the new P/S item set-up screen, unless you are starting a new set of books for an existing co. The offset goes to Opening Balance Equity, which should have a zero balance, when you are done entering all the balances from the opening Balance Sheet (if you are starting a new set of books for an existing co.), and should never be used again.

Once the books are set up, use an Expense or Check (if you paid from a bank account) or Bill (if you will pay later - offset goes to Accounts Payable) when you purchase stock. If it's a new P/S item, you can create the P/S item on-the-fly, from within the purchase screen, But enter 0 as the starting qty in the P/S item set-up screen. You can enter a cost here (optional) but it is just for populating future purchases. It does not ever change

qbteachmt

There is no New Product involved here. It is the same product; each purchase is where you list what you got. The Point of having a system managing FIFO means it tracks each time you replace stock, for that Same item, at varying cost. All you need to do is keep entering that you Bought more of that same product, if it was that same product that already exists.