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907gtesam
March 14, 2023
Question

Inventory Management

  • March 14, 2023
  • 1 reply
  • 0 views

Hi, currently my company sells automotive equipment. We buy from a couple different suppliers and sell many different products. Our cost from suppliers changes with some regularity for the same product. Example: a part could have cost us $400 6 months ago and now costs $425. Will previous sales be affected if I change the cost of a product? Using the example, would previous sales and purchases be affected if current cost is changed from $400 to $425?

1 reply

AlcaeusF
AlcaeusF
March 15, 2023

Hello there, 907gtesam.

 

I can share details about inventory management in QuickBooks Online (QBO).

 

Changing the cost of goods (COGS) sold or the cost of an inventory item does not affect the purchasing amount recorded in your existing transactions. You can change the cost of a product or service item without worrying your existing entries since it'll only reflect on your future transactions.

 

However, changes like this may affect the amount of COGS tracked within your financial records due to the concept of inventory tracking used in QBO.

 

You can check out this article for more information: What is FIFO and How is it Used for Inventory Cost Accounting? This includes the detailed steps to edit the cost of an inventory item.

 

I also recommend visiting our website for more tips and other resources you can use in the future: Self-help articles.

 

Please leave a comment below if you have follow-up questions about this or anything else QuickBooks. I'm always here, ready to help. Take care.

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