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det74
Level 2

Inventory

Hi, we moved from another software to QB and shopify and we have lots of issues with not syncing and also had to disconnect inventory apps, as they didn't not work correctly.

Can someone help with journals:

in case of sales QB automatically does this journal

CR sales (gross sales price)

DR customer (net price)

DR VAT (vat amount)

-----

CR customer (gross amount for sales)

DR payment method (gross amount for sales)

---

DR cogs (cost price of product)

CR stock (cost price of product)

 

but then recording the suppliers invoice will be also

CR supplier (Gross amount of supplier inv)

DR cogs (cost price of product)

CR VAT (Vat amount)

 

Please do not put stones on me, but why would the sale touch the cogs as now the cogs are debited twice within the same transaction, so will double the cost price journal on the cogs account.

I hope this makes sense, and someone can help.

We moved aways from Sql where everything was manually done and from journals, within the sales transaction debiting the cogs for me does not make sense.

Thank you in advance

1 REPLY 1
Maybelle_S
QuickBooks Team

Inventory

Hello there, @det74.

 

When you set up your first stock item in your Stock List, QuickBooks automatically adds two accounts to your company file's Chart of Accounts.

 

Additionally, each stock item requires an income account. You're not required to use either of the automatically set up accounts. You can create accounts or subaccounts.

 

COGS is only affected when you sell stock items on invoices or sales receipts. When you sell a stock item, run the Transaction Journal Report for the invoice/sales receipt and you see the Sales/Accounts Receivable transaction and you'll see the Stock/COGS transactions which credit the Stock Asset account and debit the COGS accounts.

 

For in-depth information, please refer to this article: Understand Inventory Assets and COGS tracking.

 

Keep me posted if you have additional questions. Just add a comment below or mention my name.

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