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COGS/reordering bulk purchase, individual sale

My supplier sells in bulk.   5 widgets in a bag.   I sell them individually.  We I receive the item  I can set the qty to 5 & divide the cost to get an appropriate COGS.  However, when I attempt to reorder, the purchase price is incorrect & I end up having to modify the PO price.

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Re: COGS/reordering bulk purchase, individual sale

Looks like your on Desktop - you should switch on the system option for Inventory  'units of measure'.

Then define a Bag5 unit for that item which contains 5 pieces.

Now you can buy and sell in single units or Bag5 units and the costing will be correct. 

Experienced Member

Re: COGS/reordering bulk purchase, individual sale

Then do you have to adjust the inventory manually?

QuickBooks Team

Re: COGS/reordering bulk purchase, individual sale

Hi aboard2123,


In addition to MikeinBC's answer, you'll have to switch the unit of measure option in the inventory item.


Here are the steps:

  1. Click Lists located at the top.
  2. Choose Item List, and find the item.
  3. Double-click the item to open.
  4. Under Unit of Measure, select the U/M Set from the drop-down list.
  5. Click OK.

Then, manually adjust the inventory by following the steps:

  1. On the Item List page, right-click on the item.
  2. Choose Adjust Quantity/Value On Hand.
  3. Select the Adjustment Type, Adjustment Date and Adjustment Account.
  4. Click the Find & Select Items button.
  5. Click Save and Close.

You can also check this article for more details: Adjust inventory quantity or value.


If there's anything else you need, feel free to leave a comment. Thanks.