QBO 2023 How to apply import costs to inventory?
We maintain stock levels for our customers of the same SKU. As an example:
On day 1 we purchase product A, 100 units at $10 factory price. ($1000 total)
The freight to import is $100, the duty payment is $100.
Total is $1200/100 units = $12/unit cost of goods.
No sales this month.
On day 30 we purchase product A, 100 units at $10 factory price. ($1000 total)
The freight to import is $200, the duty payment is $100.
Total is $1300/100 units = $13/unit cost of goods.
We receive an order for 150 units at sales price of $20. ($3000 total)
We ship 150 units.
Using First In, First Out (FIFO) method, our COGS on this sale was $1850 (100 units of $12 cogs, 50 units of $13 unit cogs).
Currently in QBO, all freight, duty, and several unmentioned costs of import are captured as expenses. Incurred at the moment we paid them. The only part that is captured in acrual methods are the factory costs of goods. The problem is, if I buy a lot of inventory in one year, my expenses are inflated from the import costs that year. The next year when I sell it, the expenses are lower and my profits soar. I would prefer to capture the actual costs to each sale.
It gets even more complicated when I factor in that all my SKUs have different cubic volume, and therefore have varying amounts of freight costs per item (i.e. 1 bath towel is going to cost more freight and storage costs than 1 pair of socks).
I am 100% certain that many people have similar business setups to this, what is the best way to capture this in QBO? Or, are there add-ons or upgrades to get this capability?