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Navid1
November 1, 2022
Solved

COGS

  • November 1, 2022
  • 1 reply
  • 0 views

Hi,

 

I asked this before but I don't get the answer that will solve my Quickbooks desktop problem. 

Upon checking the P&L I went to see my COGS which I find the amount is a little off. I noticed that on the quick report that there are BILLs stating an amount on the COGS. Isn't a BILL does not have COGS? Only Invoice?

 

I think there is something not correct on how we added the Item (or SKU) on QB because it seems that it's generating a COGS that's why it is showing on the report. 

 

Can someone help me on how to fix the error on the item so it will not show on the COGS? Thank you. 

Best answer by BigRedConsulting

This is normal.

 

It happens when you sell an inventory item into the negative QOH and then later purchase it at a price different than the cost QuickBooks guessed on the invoice - based on the item's cost history.

1 reply

BigRedConsulting
BigRedConsultingAnswer
November 1, 2022

This is normal.

 

It happens when you sell an inventory item into the negative QOH and then later purchase it at a price different than the cost QuickBooks guessed on the invoice - based on the item's cost history.

N
Navid1Author
November 1, 2022

Hi, 

 

Normal, meaning just leave it on the COGS? 

BigRedConsulting
BigRedConsulting
November 1, 2022

Normal, meaning this is how QuickBooks calculates COGS. There is no way to remove or change the COGS amount on purchases and sales, but if you could, then COGS would end up being wrong - based on the data entered on your purchases and sales (mostly purchases).

 

Generally COGS calculations in QB are very reliable, based on the purchases and sales transactions. What leads you to think the COGS is incorrect?

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