I would like to share a very weird report QuickBooks gives me whenever I pull out the P&L report and look for COGS and to see more details I click on the COGS figure and found the cost of goods for few invoices the cost of sold items is showing "0.00". When the item has sales and cost prices are there.
whenever I issue an invoice to the customer it decreases inventory and other It should create or increase a COGS: cost of goods sold but QuickBooks showing sales price but not showing cost associated with that product and services which really embassies me.
It really scared me. I don't know how to fix it. I hope this help
See the attached for more info
Hello Orangzeb, tThanks for reaching out to the Community! On the transactions which have the zero COGS could we ask you to bring up the invoice and go to transaction journal in the more section does it show the same? Could you then go to the COGS in the chart of accounts and by the account history there is a drop down arrow could you click on that and run report and attach that here on your reply so we can have a look, thank you.
Please see the attached requested report from the chart of accounts.
I am an accountant I check all reports and I found the same issue everywhere. Also, I refreshed all invoice transactions to make sure they will work out. But still, it is not giving me a COGS.
The weirdest things as attached below when I dive deep into a transaction, QBO gives me a partial COGS for the item ( e.g (if Item cost is 32 in product & services") so for selling 5 same items, QBO should give me a COGS of 160 but in the report as attache the COGS is 96 instead of 160). But for some items, it gives me COGS "0".
*Also it does the when I issue a new invoice.
I don't know what's happening. Kindly assist & fix it immediately.
Please see the attached.
Hi there, and thank you for the screenshot, orangzeb.
I can share some insights about the COGS data on your report. COGS depends on the purchasing transaction's cost.
If you haven't entered an expense for the inventory item, COGS will show a zero amount when added to the invoice.
Also, for the starting value, if there's no initial cost on the inventory item, no amount on COGS when sold.
I'm adding these links for more details about this:
Stay in touch with me if you have follow-up questions about this. I'm always around to provide the information you need. Thank you and stay safe!
Even though if I did not enter initials cost as per your screenshot attached then how do I have partial COGS for the same item within the same invoice. Please check & analyze my attached file again. Check inv "2020-1098". which means the same item in the same invoice gives me partial cogs, in other words, cogs should be either ZERO or 160 (as per 5 qty x 32 (cost price)).
*And please also, is there any way to get COGS on PnL for opening inventory without putting initial cost.
Thanks for getting back here, @orangzeb.
The Cost of Good Sold (COGS) depends on the purchase cost of the transaction. If there is no entered amount on the expense for the inventory item, it will have zero COGS when added to an invoice. Just like with the starting quantity, if there's no cost on the inventory item it will not have COGS when sold.
For your reference, please see this article: What is FIFO and how is it used for inventory cost accounting?
Also, to further investigate the root cause of the issue, I recommend reaching to our technical support team. They use specific tools to pull up your account and help you fix it. Here's how:
You can always seek self-help articles on our QuickBooks help articles page, to help you get your task done in no time.
Feel free to post here again if you have further questions about managing inventory in QuickBooks. I'm always around to help.