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Cost of Goods Sold

Forum|Forum|6 years ago
March 31, 2020
2 replies
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I have a gourmet food business with a dozen or so products. Each product has a different final cost to me, based on the co-packer cost (which already includes ingredients and labor), cost of the jar, lid, label, and freight. I order the jars, lids, and labels myself. To get the proper cost of goods sold for each item:

1) Should I enter the jars, lids, and labels as inventory when I purchase them? I'd like to keep track of how many of each I have and track them as each jar is sold as part of the COGS.

2) How do I keep track of the COGS of each item when it sells? Is the product itself the "parent" and each cost involved is a "sub account"? I don't want each little cost involved listed on the invoice to a customer.

Thank you for any help you can offer. I haven't found an exact situation in the community that fits my situation.

QuickBooks Online

Best answer by KlentB

I'll help you in managing your inventory, realdeal7.

Yes, you should enter them as an inventory. We can utilize the built-in inventory feature so that we'll be able to track what's on hand, get alerts when it’s time to restock, and see insights on what you buy and sell. First, let's create an account to track your cost of goods sold:

Select Accounting from the sidebar menu.
Choose Chart of Accounts then click the New button.
Select Cost of Goods Sold from the Account Type drop-down.
Select the closest type of Cost of Goods Sold that matches your situation from the Detail Type drop-down. If you're not sure, use Other Costs of Service - COS.
Enter the necessary information.
Select Save and Close when you're done.

Then, we can now add your products to let QuickBooks update the quantity on hand as you work

As of the moment, an inventory assembly feature is unavailable in QuickBooks Online. I encourage visiting our QuickBooks App Center to find a third-party application that can track the individual inventory parts of an inventory assembly to ensure you have all the items you need.

You can also follow these steps in searching the app:

Log into QuickBooks Online.
Select Apps from the sidebar menu.
Enter a keyword in the search bar or click the Browse category button to filter the results.

I'm hoping that you'll find the best app. If there's anything else I can help you with, don't hesitate to visit us again here. Stay safe and healthy.

KlentBAnswer

I'll help you in managing your inventory, realdeal7.

Yes, you should enter them as an inventory. We can utilize the built-in inventory feature so that we'll be able to track what's on hand, get alerts when it’s time to restock, and see insights on what you buy and sell. First, let's create an account to track your cost of goods sold:

Select Accounting from the sidebar menu.
Choose Chart of Accounts then click the New button.
Select Cost of Goods Sold from the Account Type drop-down.
Select the closest type of Cost of Goods Sold that matches your situation from the Detail Type drop-down. If you're not sure, use Other Costs of Service - COS.
Enter the necessary information.
Select Save and Close when you're done.

Then, we can now add your products to let QuickBooks update the quantity on hand as you work

As of the moment, an inventory assembly feature is unavailable in QuickBooks Online. I encourage visiting our QuickBooks App Center to find a third-party application that can track the individual inventory parts of an inventory assembly to ensure you have all the items you need.

You can also follow these steps in searching the app:

Log into QuickBooks Online.
Select Apps from the sidebar menu.
Enter a keyword in the search bar or click the Browse category button to filter the results.

I'm hoping that you'll find the best app. If there's anything else I can help you with, don't hesitate to visit us again here. Stay safe and healthy.

L

lmancini220

How can QB track the inventory of items that are not showing up on any invoice as products/services?

MarsStephanieL

Hi there, @lmancini220.

You can track your inventory item by clicking the + Add item in the Product/ Service section in your Invoice transaction window. I'll show how to do that.

Go to the + New button and select Invoice.
Enter the customer's details and click on the line to add an item.
Select the + Add item and choose Inventory.
Enter the details from there, verify and click Save and close.
In your Invoice transaction page, check the details on the amount and quantity.
Once done, select Save and close.

Here are some screenshots for your additional reference.

I added an article to help you manage your inventory items in QuickBooks and you can also check how to pull up a report in the future: Set up and track your inventory in QuickBooks Online.

Please let me know if you have any other questions or concerns, feel free and leave me a Reply. I'm always here to help in any way that I can. Stay safe there.

M

michealshawn

Would the label, bag, and roasted coffee be packaged and sold together, or would the tags and bags be sold separately, and the COGS account would be credited?

R

RCV

Thanks for checking in with us,@michealshawn.

Bundles let you group multiple products or services together. Adding products in a bundle saves you from selecting them one by one in invoices or receipts. If you need the label, bag, and roasted coffee to be packaged and sold together, here's an article you can refer to for more details about creating bundles. However, QuickBooks won't track quantities for services, non-inventory items, and bundles. In this case, it would be best to consult your accountant if you need to credit the COGS account and if you need the tags and bags to be sold separately.

If you have QuickBooks Commerce, here’s how to create a bundle of your products.

Go to Inventory.
Select the product you want to include in the bundle.
Tap Add a Bundle.
Enter the name and other details of the bundle as required, then select Save changes.
In the VARIANT NAME column, add a product or variant in the bundle.
Tap + Add a variant to add more products and variants.
Tip: You can adjust the quantity of the products and variants as needed.
Press Save changes.

After you create a bundle, it’ll show up in the list of variants. Just open the bundle, then add or update info as needed. To learn more about this one, check out this article: Create a bundle in QuickBooks Commerce. You can also refer to these articles in the future to help you manage your inventories:

Keep in touch with us here in the Community and let me know how it goes. I’m always here to lend a hand if you need a hand with running inventory reports. Have a great day ahead.

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