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M
mhbee
February 3, 2022
Question

Changing COGS on older invoices

  • February 3, 2022
  • 3 replies
  • 18 views

I literally can't even figure out a clear way to ID my issue!

I'm using Desktop Premier Plus Manufacturing and Inventory.

I have about a dozen assembly items that I have to pay a licensing fee for.  Originally when I set up the assembly, I didn't add the fee to the assembly costs, thinking that I would pull together the numbers by hand every quarter.  Then I realized that the fees should be part of the assembly in order to accurately report the COGS on each item.  So I set up a Service item for each fee, and added that to each assembly item. 

 

Now I'm needing to issue a report to generate the checks for the licensing agreements, and I've realized that some of my sales invoices reflect the item cost BEFORE I added the service item/licensing fee.  Is there a way to update my COGS on those items retroactively, so that all sales of those items reflect the actual costs?

3 replies

C
Charies_M
Level 9
February 3, 2022

Hello there, mhbee.

 

Let's create a Journal Entry to make changes or adjustments on your COGS. Make sure to consult with your accountant before making the task to ensure that proper recording is applied. 

 

Once you're done with the correction, you can now turn off your inventory tracking in QuickBooks Desktop to avoid this from happening again moving forward.

Here's how:

  1. From the Edit menu, select Preferences.
  2. Select Items and Inventory tab, then go to Company Preferences.
  3. Make sure that Inventory and purchase orders are active box is unchecked.

Also, you can run the Transaction Journal Report for the invoice/sales receipt and you'll see the Sales/Accounts Receivable transaction as well as the Inventory/COGS transactions.

 

All you need to know about tracking inventory assets and the cost of goods sold can be found in this article: Understand inventory assets and cost of goods sold tracking.

 

For more details about how inventory works in QuickBooks, check out these articles:

Don't hesitate to let me know if there's anything else you need help with managing inventory. I'm here to help anytime.

M
mhbeeAuthor
February 5, 2022

I'm not sure I explained myself very well.  I absolutely MUST track inventory and use purchase orders, so turning that off is not an option.

 

I was just trying to find a way to accurately report the licensing fee on those items so that I can send the funds that are required as part of my agreement.

L
lin_jcaj
Level 9
February 5, 2022

Welcome back, mhbee.

 

I'm here to help you get back to business. 

 

Adding the fees to the assembly items doesn't affect old transactions. What you can do is edit or delete/recreate the sales invoices one at a time.

 

You'll want to run the Transaction List by Customer report and filter the transaction type to show just your sales invoices. 

 

  1. Select Custom & Receivables from the Reports tab, then click on  Transaction List by Customer.
  2. On the report's page, click on the Customize button so you can filter the report to show just the invoices.
  3. Go to the Filter column under the Modify Report window, then search for Transaction Type.
  4. Under TransactionType select Invoice, then tap OK.
  5. Locate the invoices you want to edit then, click Save and Close.

 

As always, read our help articles in case you need tips and related links while working with QuickBooks in the future.

 

Get back to me if you have any other questions. I'm a few clicks away to help. Have a good day!

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