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BobbyD1
January 8, 2024
Question

How to change the COGS account on an inventory item without impacting prior periods

  • January 8, 2024
  • 1 reply
  • 0 views

Hello, I have an inventory part in QB Enterprise that was mistakenly set to an expense account in the COGS section by another user. How do I correct the COGS account without impacting prior closed periods? I would normally just create a new item and archive this one but we have active PO's with this item and a huge current inventory under that item name that I'm not sure how I would be able to adjust all of it to a "new" item name still being the same product.

Thanks!

1 reply

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LeizylM
January 8, 2024

I understand the importance of changing the COGS account on an inventory item in QuickBooks Desktop (QBDT), KellsM. 

 

The option to edit the COGS account is unavailable in QBDT. As an alternative, you can create a new item with the correct associated account and then re-enter the previous transactions.

 

Here's how:

 

  1. Go to Lists, then click Item List.
  2. Select Item then New. 
  3. Select the type of item you want to create.
  4. Fill out the item fields.
  5. Select Save.

 

You can check this article for more information on how to create an item: Add, edit, and delete items in QuickBooks Desktop.

 

I'm also attaching these articles that you can use for guidance in managing your COGS. These provide details on how to keep track of your COGS and inventories: 

 

 

I'm always here to help if you're still having issues with your COGS account, I'm just a few clicks away from you

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BobbyD1Author
January 8, 2024

If I create a new item when we have open purchase orders how will I be able to record the PO as received in full when the item name has changed? Also, I currently have about 7,000 units in inventory under this name, how would I move those units to the new item with a different COGS account?

Thank you

A
AnneMariee
January 8, 2024

Hello there, @KellsM.

 

I'd be happy to assist you with recording a fully received purchase order and changing the Cost of Goods Sold (COGS) account on an inventory item.

 

First, let me guide you through the process of recording a purchase order as received in full.

 

  1. On the top menu, click Vendors. Then, select Receive Items & Enter Bill.
  2. Choose the vendor associated with the purchase order.
  3. When the Open POs Exist window opens, click Yes.
  4. Tick the purchase order. Then, hit OK.
  5. Click Save & Close.

 

Once you have completed the process, you'll notice that your purchase order has been successfully marked as "Received in Full".

 

Furthermore, if you wish to change the Cost of Goods Sold (COGS) account for an item, you can proceed by following the steps provided below.

 

  1. On the top menu, click Lists.
  2. Select Item List.
  3. Search for the item for which you wish to modify the COGS account.
  4. Double-click on it. Then, choose a different account on the COGS Account dropdown.
  5. Click OK.

 

Once you've finished, the Cost of Goods Sold (COGS) account associated with your item will be successfully updated to reflect the changes you've made.

 

I'll leave these articles for more information on purchase orders and COGS tracking:

 

For future use, here's a guide on tailoring your supplier reports based on your needs: Customise supplier reports.

 

If you have any other inquiries regarding purchase orders and COGS accounts, please don't hesitate to reply below. I'll be here to provide further assistance when needed. Keep safe.

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