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jlazarchic
January 25, 2024
Question

Trying to adjust COGS on an invoice due to incorrect FIFO amounts

  • January 25, 2024
  • 1 reply
  • 0 views

Hello, I have seen several articles on similar but no answers to this.  

 

I have several products(items) that the end of month Inventory is off.

The system shows 0 units, but still shows asset $$ with that item

 

My understanding from what I have read is I cannot just write off the value at the product level, so I need to adjust COGS at the invoice level but cannot find any information on doing that.

 

For example:

I have an item that the 12/1 opening inventory is 7516.00 for 172 units or 43.44509 each.  BUT all my invoices the COGS posted were $37.58 each.  So at the end on 12/31 I have 0 units but $1012.66 left in the asset acc.  Seems the fix it to adjust COGS of the first 172 units sold to be 43.509 so that on 12/31 I have zero units and $0.00.  

But I cannot figure out how to adjust the COGS in an invoice, I can see the JE, but cannot change it.   Ideas?  What a I missing?

 

1 reply

A
AbegailS_
January 26, 2024

Thank you for getting in touch with us. I can assist you with your inventory issues, @jlazarchic.

 

If you have only one item in your Inventory Asset and there's no remaining quantity, then that asset account should also be zeroed. In your case, there might have been an adjustment made that directly affected the Inventory Asset account. To investigate this issue, I suggest running a report of the asset account and the inventory item to see the transactions that are affecting their values.

 

By running the item report, we can determine why the released COGS or price of the item has changed from $43.44509 to $37.58. We will then be able to decide on the next steps to correct your records with confidence. 

 

On the other hand, if the starting value is incorrect, the item will show zero asset value. In addition, a product adjustment may have been created. To resolve this, I recommend going to the Products and Services page and reviewing the item's configuration. Then, update the details to address the issue.

 

To do this, you can follow these steps:

 

  1. Select Products and Services from the Sales menu on the left panel.
  2. Select the item you're working on from the list and click the Edit button in the Action column.
  3. Go to the Quantity on hand section and hit the Starting value link to see more information about the product.
  4. To confirm the action, select Got it.
  5. Check the item details on the Inventory Starting Value # Start page to ensure the data entered is correct.
  6. Update the information if it is incorrect.
  7. Save and close the window.

 

If an adjustment has been entered for the goods, double-check the data to ensure it is correct. Follow the steps in this article to verify the information. To view the complete instructions, go to the Edit or delete an inventory quantity adjustment section: Inventory Quantity Adjustment in QuickBooks Online.

 

To help you track your top-selling items and services, you can use reports to see your sales and inventory status in QuickBooks Online. Moreover, you can modify your reports in QuickBooks to show the correct data for each transaction. 
 

Here are some articles that will guide you on how to customize reports and create enhanced custom reports in QuickBooks Online:

 

 

I am always here to help you with any other inventory concerns you may have. 

J
jlazarchicAuthor
January 26, 2024

I have pulled the detail and reviewed it.

 

As late as 9/30 we had 0 inventory and 0 dollars.


Every transaction and inventory average is correct from 10/1 to 12/31

There have been a couple receipts below the old cost ($34 vs $37) but that is to be expected and reflected in the average carrying cost correctly.

 

Now on 12/31 the Inventory Detail Report is showing 27 units @ $37.58 which is what I want to write off to 0 and 0.  BUT when I go to Inventory Adjustment I am seeing 0 Inventory and $0 so I cannot write it off.

How does detail show one 12/31 balance and Inventory Adjustment shows another?

 

 

M
MAnneJ
January 26, 2024

Hello there, @jlazarchic.

 

I understand how important it is for you to run your inventory detail report. However, to give you the most accurate response, I would like to ask for a detailed screenshot to identify the issue. Any additional information would be much appreciated.

 

In the meantime, you can check out this article to learn how to track your inventory in QuickBooks Online: Set up and track your inventory in QuickBooks Online.

 

Please do not hesitate to reply to the thread for additional assistance needed. I'll keep an eye out for it. Keep safe. 

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