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A
accounting126
November 1, 2021
Question

How can I fix this as the cost of goods sold is all out of balance. and my year end is all wrong

  • November 1, 2021
  • 1 reply
  • 0 views
Parts dept changed the rate for a particular item from the bulk price to individual portion price and back again a few times. This is throwing out the FIFO Cost and the ASSET Value. Every invoice shows the right amount, the customer paid the right amount. In the background the inventory valuation rate is wrong. How can I fix this?

1 reply

A
Alex M
November 2, 2021

Hi there accounting126,

 

It's vital that all your transactions be entered correctly in your books so that your cost of goods sold is correctly calculated. QuickBooks Online is a great tool able to help you with keeping track of the value of your inventory as you purchase and sell units. I can point you in the right direction for assistance with adjusting your inventory.

 

In order to make an edit to the initial value of your inventory, you can do so by navigating to the Sales tab, then Product and services. Find the inventory item in question in the list, then click on the drop-down arrow in the right column to find the Adjust starting value option.

 

In order to know if you should be making this change and what amounts to put, I recommend reaching out to your accountant. They'll be able to guide you in how to adjust your inventory to make the cost show up properly. You can add your accountant as a user by clicking on the My accountant tab. You can also find an accountant while in that section by clicking on the Find a pro to help option.

 

If you have any other questions, feel free to reach out here.

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