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GaWestern
September 1, 2021
Solved

Why did it post huge COGS entries?

  • September 1, 2021
  • 1 reply
  • 0 views

We posted a credit memo from a vendor for $300 due to some parts we returned. QB debits AP and credits Inventory for the $300, but somehow also debits COGS for $500k and credits COGS for $50k. I am extremely confused. Has anyone seen this before??

 

 

Best answer by AlexV

Hello GaWestern!

 

Thanks for the reply. Let me assist you with the vendor credits.

 

Ideally, QuickBooks Desktop also creates an entry for COGS when creating a vendor credit for a return cost at less than the average cost. This is to track the loss on the background of the credit.

 

On the screenshot you've added, you can double-click on the entries for COGS. That way, you'll have a detailed report and understand more where it came from.

 

I've added some links you can check. These will show you how to personalize the reports in QuickBooks Desktop:

 

Leave a comment again here if you have additional concerns. Take care!

1 reply

Candice C
Candice C
September 1, 2021

Hey there, @GaWestern. 

 

Congrats on making your first post here in the Community. Allow me to give you some helpful tips to get an answer to your question about COGS entries.

 

To be sure on this, I recommend consulting with your accountant. They'll be able to explain these details and give you the best accounting advice for your business. If you don't have one, click on this link to find one near you. 

 

If you have any other concerns about QuickBooks, feel free to ask. I'm always here to lend a helping hand. Have a wonderful day! 

G
GaWesternAuthor
September 1, 2021

I am our accountant. The issue isn't 'what is COGS" or anything similar, it is why did QB post this part of the transaction with no tracing as to where it came from?

AlexV
AlexVAnswer
September 1, 2021

Hello GaWestern!

 

Thanks for the reply. Let me assist you with the vendor credits.

 

Ideally, QuickBooks Desktop also creates an entry for COGS when creating a vendor credit for a return cost at less than the average cost. This is to track the loss on the background of the credit.

 

On the screenshot you've added, you can double-click on the entries for COGS. That way, you'll have a detailed report and understand more where it came from.

 

I've added some links you can check. These will show you how to personalize the reports in QuickBooks Desktop:

 

Leave a comment again here if you have additional concerns. Take care!

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