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D
Daltons
June 29, 2022
Question

Inventory, Purchase Orders, COS, Bill Payment, Shrinkage

  • June 29, 2022
  • 1 reply
  • 0 views

Hi

 

I use the Inventory/Purchase Order features in QBO and understand the Purchase Order in Non-Posting but I'm unsure of how the system reports COS in P/L.  

 

Shrinkage appears to be the only account reporting COS to P/L, how are Bill Payments for Stock reported where my Stock Items are Posted to a Cost of Sales Expense Account?

 

I am worried that my COS might be posted twice, 'Shrinkage' > Stock Asset Account and 'Cost of Sales' > Expense Account?

 

Also, if I add an amount in 'Sales Price/Rate' to 'Sales of Product Income'  > Income Account is this added to Sales Income in addition to the Sales Figures submitted by Zettle?

 

Regards

Geoffrey Cann

 

1 reply

C
CharleneMaeF
June 30, 2022

I've got you covered, Geoffrey Cann.

 

Let's make sure the Initial Cost is added to the items. This way, the Cost of Sales will show on the Profit and Loss report. Here's how:

 

  1. Go to the Gear icon and then select Products and Services.
  2. Locate the stock item and click on the Edit link.
  3. Then, locate the Starting Value hyperlink, and click it. 
  4. On the Initial Cost box, enter the cost of the product.
  5. Once done, click on Save and Close.
  6. Repeat the process for the other items.

Once done, run the Profit and Loss report to view the Cost of Sales.

 

For the bill payment, you can check where it was reported by running the Bills and Applied Payments report. Here's how:

 

  1. Go to the Reports menu.
  2. Search for Bills and Applied Payments Report.
  3. Click Customize to filter the correct payment.
  4. Once done, click on Run report.

 

As for adding an amount in Sales price/rate, this will not be added to the sales figures as long you don't create any sales transactions. 

 

Additionally, I encourage running reports in QuickBooks Online to see your best sellers, what’s on hand, the cost of goods, and more. This ensures your data is accurate.

 

If you have any more questions, please don't hesitate to reach back out. I'm always a comment away!

D
DaltonsAuthor
June 30, 2022

Hi

FYI

  • Business is a Sole Trader Public House with Casual Dining
  • Purchase Orders used only for Wet Stock (Tied to Brewery)
  • All Stock items have Purchase Cost inputted
  • Accounts are using Accrual method 

Please confirm if my understanding is correct for each of these points

  • Stock Shrinkage represents my Cost of Sales in P/L Report?
  • This figure is only accurate following most recent stock count? 
  • Stock Transactions > Purchase Orders, Bills, Bill Payments are not posted to Accounts > P/L, VAT?
  • Stock Transactions > Bank Transactions, Bills, Bill Payments are solely used for Reconciliation purposes?
  • Sales Income figures are solely represented in P/L from imported Zettle Sales Data?
  • Sales Income figures are not generated from Stock Shrinkage in P/L?

 

As for adding an amount in Sales price/rate, this will not be added to the sales figures as long you don't create any sales transactions. > Does this refer to sales processed using QBO and not those imported from my ePOS Zettle?

C
CharleneMaeF
June 30, 2022

Thanks for getting back to us, Daltons.

 

Yes, you're correct about the Stock Shrinkage. This represents your Cost of Sales in the Profit and Loss report. The figure is also accurate following the most recent stock count.

 

As for the stock transactions you've mentioned, they're not reported in the Profit and Loss report. You can run Vendor reports to view them.

 

Aside from the transactions that are solely used for reconciliation you've added, these also included the manually entered data in the program that affects the accounts.

 

Also, Sales Income figures are represented in the Profit and Loss report from the imported Zettle data. The amounts aren't generated from Stock Shrinkage in the report.

 

Lastly, when using the newly added Sales price/rate in your sales transactions, this refers to QuickBooks and the ePOS Zettle sales.

 

I’m also adding this article that you can read for reference in case you need to add another product to your account: Add stock products in QuickBooks Online.

 

If you have other follow-up questions about managing your stocks, you can always tag me in your reply. I’m always around ready to help you. Have a good one! 

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