Hello there, @jludlow,
I'd be glad to help change the unit cost of your inventory item imported from Reckon.
Lets go to the Products and Services page and edit the value of the item from there.
That information I shared above will help you change the cost of the item.
If you need to adjust inventory quantity on hand, please check this out for additional guidance: How to Adjust Inventory Quantity on Hand.
Feel free to leave a comment below if there's anything else you need to change on your inventory items. I'm always around whenever you need help.
Thank you for that information. I am correcting last fiscal year's books. Since the cost has changed over the year - how do I handle that? I didn't see a date that would set the cost. I checked my other items - ones that are working correctly, and they all have the cost set to 0 in the edit screen. We are using FIFO for costing.
I am delighted to hear again from you, @jludlow.
You can change the initial cost and the date you start tracking the inventory item. I can walk you through on how this works.
For more detailed information, you may check this article: Inventory links and resources.
Always feel free to leave a post if you have other questions. I'm always here to help.
But what if you want to 'de-value' an item. Let's say you have had an item that has been in stock for too long. The item is so old, you are not sure if it will even sell. The year has been good, so you are able to afford taking a write down of the inventory. You have already made a General Ledger entry to expense a portion of the balance sheet inventory account. But now you want to change the value of the item from let's say $4.50 per unit to $1.00 per unit. The sales that were prior to this, should show the cost per unit as $4.50, but all sales after the de-valuation should show $1.00 per unit. How do you do that?
It's great to hear again from you, @jludlow.
As of the moment, the steps provided by my colleagues are the only ways to change an item inventory value in QuickBooks Online.
I'd suggest you contact your accountant for further advice to validate this information.
Should you need help with anything else, you're always welcome to post again here in the Community. We're glad to be of your service.
Below message shows up when I am trying to adjust the starting value, what should I do?
"Please select a date that comes before any transactions that used this item."
Thanks for your help in advance.
You can only post transactions after the start date of the inventory item. The date in the inventory item is to when you will start tracking quantity, which is why you can't create transaction before the date entered. This could be why we are not able to change the value, because we are trying to change it, but we already have transactions open with this inventory.
Do you recall entering a starting value for your inventory? You might need to update that.
Keep me posted.
Thank you for your reply.
Some of the products in my inventory have 0 on hand and the asset value somehow show 0.4 when I generated the "Inventory Valuation Summary" report
Is there a way I can reconcile the inventory value?
If you were looking to reconcile the account you can do so by going into the Accounting tab > Reconcile.
From there you would select the account and enter the relevant information, then begin reconciling.
Here is a link to an article for some more insight -
Hope this helps, keep us informed of your status.
Absolutely, but the process of doing so depends on the plan you are on. Only Plus users will have their inventory tracked automatically. The Plus suite offers the following:
If you'd like to track this inventory manually though, and are on a Simple Start or Essentials plan, you have some options.
Give a read through on how to do this and reply here with any questions: Can I track inventory manually?
None of the QB team replies actually help any of us with our issues!!!! So frustrating. You just post standard answers and you fail to realise that your Quickbooks Online version is not able to do everything we need it to do in terms of adjusting INVENTORY VALUE directly! I have stock items with 0 quantities with negative and positive values which makes NO SENSE and your program doesn't allow us to adjust!!! WTF
We don't want you to feel that way, JackT.
If you're using QuickBooks Online Pro, you have the option to manually adjust the item's quantity. Here's how:
Check this article to learn more: Adjust inventory quantity on hand in QuickBooks Online.
If you're using a different version of QBO, you can inactivate the inventory item instead. Here's how:
Feel free to leave a comment below if you have additional questions about inventory adjustment.
I'd like to join the conversation and add information about adjusting an inventory item's cost/value. We'll talk about two things here: the initial value and the value of the additional purchases.
QuickBooks Online follows FIFO will only let you adjust the starting value/cost of an item. For example, when you move data to QuickBooks and record an inventory with a cost of $6. However, you need to change it to $5 later on. You can adjust the starting value using the steps shared by IanJuviel above. That's it, starting value of the initial quantity only.
On the other hand, if you purchase more quantities at a different price and you want to revalue the item of that purchase, you're unable to do that. But if you put a wrong cost when you record the purchase, you can update it. That's the only way to revalue the cost of the additional purchases.
Here's an article for more details: What is FIFO and how is it used for inventory cost accounting?
Let me know if you have other questions.
Hello, I have followed this method and it saves fine, but the old price is still showing up in COGS. For example, I have changed a product from box of 1000 at $90 cost to be "each" at $0.09 each. I enter an invoice for 10000 units at $0.09, sale is for $900, but COGS is picking up the old $90 and showing as $900,000. A bit scary when you look at the P&L! :-)
any advice? I would prefer not to delete/inactivate the inventory and start again, but is there a way to fix this. There are a few invoices with open still with the old pricing - is this possibly why the new pricing is not showing properly?
Because of the way that FIFO inventory costing works, the system will continue to value that item at the same original value until all of those units have been sold, after which the new value will be assigned to that product. As mentioned above, there isn't exactly a way to adjust this directly, outside of creating an adjustment to the starting quantity or starting value. In a situation such as yours, where there are still outstanding invoices that are using the older pricing, it would be difficult to advise of any steps that would assist you without being able to obtain more information about your inventory specifically - I would recommend to reach out to your Accountant or a Certified ProAdvisor in this case for assistance in updating your records to more accurately reflect the inventory value. If you're unable to do so, then you are welcome to reach out to our support team, although while they may be able to provide some additional options, bear in mind that they are not trained accountants and will be unable to advise you of how exactly you should record this. You can call the support phone number on 1800 046 038, or follow the steps below if you'd rather receive a callback or start a chat:
Hello there, broldan.
If you want to adjust the cost, you can directly edit each item. You can only adjust the value on the Inventory Quantity Adjustment page. Let me show you the steps again on how to edit an item's cost:
The changes will affect future transactions. That being said, the existing transactions will still use the old cost. Feel free to use this link for more details on setting up and tracking your inventory in QuickBooks Online.
Let me know if you have other questions. Take care!