Adjusting the cost of goods purchased for resale

lunk · ‎April 28, 2020

I purchase items for resale for $5.00. I enter them in the item list with the quantity that I purchase. I sell those items for $10.00. I enter that sale on a sales receipt and at the end of the month I run a standard profit and loss and expand the cost of goods sold line and everything is fine. I sell out of my original inventory but my cost has gone up to $6.00 so I adjust the price in the item list under cost of goods sold to $6.00 and I change the sales price to $11.00. I adjust my inventory amount and I should be good to go. The next month I sell that item for $11.00 and when I run the standard profit and loss and expand the cost of goods sold line, it shows the correct selling price but the cost that I bought the current inventory for is still at the $5.00 amount.

I could use some help figuring this out.

Thanks, Dave

katherinejoyceO · ‎April 28, 2020

Hi there, @lunk.

Welcome to the Community. I appreciate the effort to post detailed information on your concern.

Since you've made adjustments on your product's value, I'd recommend you run the Inventory Valuation Summary report and look for the items you adjusted to make sure everything looks good. Here's how:

Select Reports, then click Inventory.
Select the Inventory Valuation Summary, then set the dates to All.
Double-click the item in question.

Additionally, your product’s total value is its average cost multiplied by its quantity in stock. I'd suggest you consult your accountant for advice on adjusting inventory value.

Check out this article for more details: Adjust your inventory quantity or value in QuickBooks Desktop.

For future reference, read through this article to learn more about inventory assets and COGS: Understanding inventory assets and cost of goods sold tracking.

Let me know if you additional questions. I'll be around to help. Stay safe.

lunk · ‎April 30, 2020

Thank you for your help. What was happening was that I was not keeping up on the inventory like I should have. I think I got it all straightened out. My next question has to do with my ebay sales and how to have those show up properly while making the necessary deductions from the inventory. That might be another thread.

Dave

ChristieAnn · ‎April 30, 2020

Hi there, lunk.

I suggest contacting your eBay support if they can sync inventory tracking with your QuickBooks Desktop account.

If not, I suggest making sure that the items used on the sales transactions created in QBDT from eBay must be an inventory type. That being said, Inventory item is deducted in QBDT each time a sales is entered.

You can check this article to see steps on how you can add, modify, and delete items: Add, edit, and delete items. This will help you determine if the item was set up in the Inventory type.

Please check this article on how to record an adjustment every now and then to keep your inventory status in QuickBooks accurate: Adjust your inventory quantity or value in QuickBooks Desktop.

You can also click to this article on how to create batch invoices and to delete transactions by batch: Enter transactions by batch in QuickBooks Desktop.

Please feel free to let me know if you have follow-up questions about your inventory data. I’m always here to make sure we’re on top of every issue you have.

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Adjusting the cost of goods purchased for resale