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ryanavarisource
Level 2

Cost of Goods/Average Cost Incorrect after Credit Memo

Two months ago we sold x10 widgets that had a cost of $250 each.  One month ago, we sold 2x of the same widget to a different client which had a higher cost of $350 each.

 

Now, the customer from two months ago returned the x10 widgets and we created a Credit Memo for the widgets and credited the customer.  The issue is that the x10 widgets now in stock, have a cost of $350 each even though the actual cost for the widget on the first transaction was $250 each. 

 

How do we amend this?  Our inventory shows a value of $350 x10 ($3500) instead of what it should be. $250 x10 ($2500).

3 Comments 3
IamjuViel
QuickBooks Team

Cost of Goods/Average Cost Incorrect after Credit Memo

Hello there, @ryanavarisource.

 

I'd be delighted to share some information on how you can create separate item lists to record the different price packages offered to your customers. Let's get started!

 

By creating a separate item list for the widget amounting to $350 and another one amounting to $250, you'll be able to do inventory tracking under Cost of Good sold. 

 

Here's how to create an item list:

  1. Go to List.
  2. Choose Item List.
  3. On the Item drop-down, choose New.
  4. Choose Group as the type of item.
  5. Complete the item information.  
  6. Click Ok.

For additional insights, you may check out this article: Understand Inventory Assets and COGS tracking.

 

If you need further help with , I’d suggest contacting our Customer Care team. A specialist will be able to look up your account securely and further assist you via secured remote access session.

 

Here’s how to contact us:

 

  1. Visit: https://help.quickbooks.intuit.com/en_US/contact.
  2. Choose your QuickBooks Product.
  3. Select your QuickBooks version.
  4. On the Contact Us page, click a topic.
  5. Click on the Get Phone Number button to see the support number.

Let me know if you have other questions about tracking cost of good sold. I’m always here to help.

qbteachmt
Level 15

Cost of Goods/Average Cost Incorrect after Credit Memo

@IamjuViel

 

Please Learn from this input.

 

@ryanavarisource

 

if you really have the same Widget, the fact that it costs varying amounts is the point of Average Costing. You bought it Back from the other customer at the higher Price, so that is your Cost, now. That changes your Average on hand.

 

If you are describing different Items, not the Same Item, you need to track them as different inventory items. Inventory cannot ever be tracked as Generic Item by name.

 

There is nothing to adjust, based on what you described.

Malcolm Ziman
Level 10

Cost of Goods/Average Cost Incorrect after Credit Memo


@qbteachmt wrote:

 

 

You bought it Back from the other customer at the higher Price, so that is your Cost, now. 

 


Using this logic, the item cost of what they bought is the item selling price of the c/memo, which is not stated, not the $350 cost of the previous sale

 

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