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Navid1
May 27, 2022
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cost of goods sold issues with the amount

  • May 27, 2022
  • 1 reply
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I noticed that some the COGS in quick report some transactions has no amount and some has. This is on BILL transaction. Are these going to give me inaccurate report? I need help on better understanding regarding inventory assets and COGS when doing Purchase order, bill and paying bills. 

 

Best answer by BigRedConsulting

Purchase transactions (Bills, Checks, CC Charges) usually don't include COGS when purchasing inventory items, but they will in one case that I know of:

 

If you sell inventory you don't have so the QOH for the item goes negative and then later you purchase that inventory item and the cost is different than the previously-known cost, which was used as the COGS amount on your sale, then QB will include COGS on the Bill in order to 'catch up' and correctly reflect the true COGS for the items you pre-sold.

1 reply

BigRedConsulting
BigRedConsultingAnswer
May 27, 2022

Purchase transactions (Bills, Checks, CC Charges) usually don't include COGS when purchasing inventory items, but they will in one case that I know of:

 

If you sell inventory you don't have so the QOH for the item goes negative and then later you purchase that inventory item and the cost is different than the previously-known cost, which was used as the COGS amount on your sale, then QB will include COGS on the Bill in order to 'catch up' and correctly reflect the true COGS for the items you pre-sold.

N
Navid1Author
May 27, 2022

Thank you for your input. But you mean, is it normal to have in the report for COGS that some of the bill transactions have amount $$ and some does not have? Since you mentioned that PO transactions usually don't include COGS does it means that it was from Invoices we sell and the report from my P&L still accurate giving the situation I mentioned earlier? Do you have any suggestion if I need to correct this issue?

BigRedConsulting
BigRedConsulting
May 31, 2022

RE: But you mean, is it normal to have in the report for COGS that some of the bill transactions have amount $$ and some does not have?

 

Yes, as described in my previous post.

 

RE: Since you mentioned that PO transactions usually don't include COGS

 

Not sure what you mean. PO's, Purchase Orders, never include COGS. They aren't posting transactions.

 

RE: Do you have any suggestion if I need to correct this issue?

 

There isn't an issue, as far as I can tell. There's nothing to fix.

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