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HelenQiu
September 23, 2021
Solved

cost of sales

  • September 23, 2021
  • 1 reply
  • 0 views

Hi 

I have a question about the products cost. When we buy the products, the price may change and our cost will change as well. We may also sell the products in different price. Will the price and cost in the inventory section will affect the accounting result?  Or only the price in the invoice and the cost in the purchase order/invoice from the seller will affect the accounting result?

Best answer by AbegailS_

Thanks for posting here in the Community, Helen.

 

Yes, your accounting result will be affected every time you adjust the cost and price of a certain item.

 

QuickBooks Online (QBO)  tracks inventory using the first-in, first-out (FIFO) concept. You'll want to sell the first units you buy (First In) (First Out). When you enter sales, the system automatically adjusts your asset and Cost of Goods Sold.

 

To modify the cost and initial quantity of an item, follow these steps below:

  1. Go to Settings ⚙ and select Products and Services.
  2. Highlight the item, then select Edit from the Action column.
  3. Choose Starting Value.
  4. Select Got it.
  5. Enter the item's correct quantity and cost.
  6. Click Save and Close.

 

You can check out sample scenarios in this article: What is FIFO and how is it used for inventory cost accounting?

 

All you need to know about tracking your inventories in QBO can be found in this article:

 

I'd also recommend you consult an accountant for additional guidance in making these changes to ensure the accuracy of your accounts.

 

You can also run reports to see your sales and inventory status in QBO.

 

Get back to me if you need help with managing item costs in QBO. I'll be around to answer them for you. Enjoy the rest of the day!

 

1 reply

A
AbegailS_Answer
September 23, 2021

Thanks for posting here in the Community, Helen.

 

Yes, your accounting result will be affected every time you adjust the cost and price of a certain item.

 

QuickBooks Online (QBO)  tracks inventory using the first-in, first-out (FIFO) concept. You'll want to sell the first units you buy (First In) (First Out). When you enter sales, the system automatically adjusts your asset and Cost of Goods Sold.

 

To modify the cost and initial quantity of an item, follow these steps below:

  1. Go to Settings ⚙ and select Products and Services.
  2. Highlight the item, then select Edit from the Action column.
  3. Choose Starting Value.
  4. Select Got it.
  5. Enter the item's correct quantity and cost.
  6. Click Save and Close.

 

You can check out sample scenarios in this article: What is FIFO and how is it used for inventory cost accounting?

 

All you need to know about tracking your inventories in QBO can be found in this article:

 

I'd also recommend you consult an accountant for additional guidance in making these changes to ensure the accuracy of your accounts.

 

You can also run reports to see your sales and inventory status in QBO.

 

Get back to me if you need help with managing item costs in QBO. I'll be around to answer them for you. Enjoy the rest of the day!

 

C
Capriccio
November 9, 2021

This is helpfull for me. 

However, we have over 1500 items; is there a possibility for batch action? 

Can't find it. Thank you.

M
MadelynC
November 9, 2021

I’ve got some information for you so you can save time managing these 1500 items in QuickBooks, Capriccio.


You can export your products and services to Excel so you can easily update the cost and the initial quantity. I’ll show you how:

 

  1. Select the Gear icon.
  2. Under Lists, choose Products and services.
  3. You can filter your items by Inventory, Non-inventory, Service, or Bundle.
  4. Click the Export icon beside the Print icon.
  5. In the spreadsheet, modify the cost and initial quantity.


Once done, you’ll want to import them to QuickBooks Online to update the values automatically. You can follow the steps below to do it:

 

  1. Go back to the Gear icon, then select Import Data.
  2. Choose Products and Services.
  3. Select Browse to upload the file from your computer.
  4. Press Next.
  5. Map your information, then click Next.
  6. Select Overwrite all values for each product or service with the same name. Make sure everything looks correct because this can't be undone.
  7. Select Import.


Check out this guide for more insights and complete instructions: Import products and services into QuickBooks Online.


Also, you can use this reference to help your sales and inventory organized: Group your products and services into different categories.


If you have any other questions or concerns with managing your items, just let us know by adding a comment below. We'll be more than happy to help. Keep safe!

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