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GuysHauling
July 22, 2021
Question

Cost of goods sold instead of Accounts Receivable

  • July 22, 2021
  • 1 reply
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When we created new items in our system they defaulted to the cost of good sold account instead of the accounts receivable account. Once the issue was caught we changed those items to go to the correct account for future use, but how do we get the ones to covert or move over to the accounts receivable account that were logged incorrectly originally? 

1 reply

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LauraAB
July 22, 2021

Hi GuysHauling,

 

Thanks for joining us here in the QuickBooks Community. I see that you've chosen QuickBooks Enterprise as the version of the software you're using and I hope it's meeting your bookkeeping needs. I appreciate the brief explanation of what's happened with the items you've set up in the program, and I'd be happy to go over this with you.

 

When you set up an inventory item in QuickBooks Desktop, the program has a few fields for attributing different accounts to it, including the account related to purchases, the account related to sales, and the account related to the asset for inventory items. Typically, QuickBooks will automatically assign the COGS account to an inventory item so that you can track the cost to the business. When you add the item to an invoice or other sales form, that's where the Accounts Receivable account generally comes into play. Here are a few articles you may find helpful.

One of the great things about the program is having the option to choose which accounts you'd like, which I see you've done here. All the same, I recommend checking in with an accountant to see if they're appropriate for how you need to track these details for your business. If you don't yet have an accountant, check out our Find an Accountant page.

 

Checking in with an accountant is also what I recommend for figuring out how to reallocate your funds from one account to another in this situation. It may be something as simple as using a journal entry even, but an accountant will be able to advise you if that's the case and what lines to enter on the journal entry if it is.

 

You may also receive responses from other users in this forum who are savvy in this area. It doesn't hurt to check with an accountant though for a more immediate response and to be able to discuss your books in detail to make sure you have the right options for you.

 

I hope this has been helpful! Take care.

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