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Established Member

Inventory and COGS

I have a question about how timing of transaction entry is interpreted by QB when entering invoices, and potentially entering receivers after the fact.  
 
More specifically, QB calculates the average cost of all items, and uses the average cost when creating a COGS as invoices are entered.  
 
We will be entering invoices for prior months.  
 
Taking August as an example, will the August revenue report invoice use the average cost as of the invoice date?  And, if a receiver for August is entered AFTER the entry of the Aug invoice, will QB automatically update COGS for any change in average cost created by the recording of that new August receiver?
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Established Community Backer ***

Re: Inventory and COGS

You need to enter a purchase, or initial stock with cost to start with

 

If you do not there is a bug in QB inventory, see this

http://onsale-apparel.com/Rustler/warning-inventory-bug

 

Once you have an established average cost the bug will not affect that item.  When you sell to a negative on hand (best to avoid doing that) QB will post the current average cost.  When you buy more and restock, QB will compare the average cost already posted against the new actual item cost and if there is a difference QB will post an adjustment.  You will see that adjustment in the COGS detail part with the word bill as the source.