Inventory adjustments and COGS

You may not be able to easily 'fix' the COGS. Inventory adjustments directly impact COGS at the time they are made. You'll need to investigate the specific transactions and determine if additional journal entries are needed to correct the accounting. One more thing, errors like incorrect counts might be best handled by adjustments. However, if the error involved purchase pricing or miscategorization, you likely need to reverse the original incorrect entry and create a new, correct one. This preserves accurate COGS calculations.

We're glad to have you here, @RuthAnnW. Let me share insights regarding the Cost of Goods Sold (COGS) when adjusting the inventory in QuickBooks Online. 

When you make changes to the inventory, it will impact the COGS. The inventory is a crucial factor in calculating the COGS that are reported in the income statement. Any modifications made to the inventory will have an impact on the company's current assets in the balance sheet as well as the COGS accounts. Therefore, it is advisable to consult with your accountant for further assistance.

Moreover, see this article to help you understand how inventory adjustment works: Adjust inventory quantity on hand in QuickBooks Online. 

On the other hand, you can have a report when tracking the best thing to buy and sell for your business and also see the status of your inventory in QBO. 

Notify us if you have additional questions about inventory adjustments and COGS in QBO. We're here to help. Have a good one. 

@RuthAnnW 

What exact inventory entry error did you make?  Entering a bill?  An Inventory Quantity Adjustment and, if so, what Adjustment Account did you use?  How did you attempt to correct it?  Without knowing the specifics, there's no way to advise you on how to correct it.