Inventory cost was not entered.

Good day, shahbazk1987@gma.

You have me to help you enter an inventory cost in QuickBooks. Let me guide you how:

1. From the Sales tab, select Products and Services.
2. Locate the item and then click Edit.
3. Click Starting value under Quantity on hand.
4. Enter an Initial cost.
5. Click Save and Close.

You can also pin this page that talks about the importance of initial cost: Learn about initial cost.

That should do it. Let me know if I can be of any assistance. Stay safe!

Thanks for replying. By entering the initial cost, will my COGS will be computed? and my inventory assets will be reduced? I want to make sure that it will have a retrospective impact?

Hello there, shahbazk1987.

Once you enter a value in your sales cost, the system will automatically calculate inventory COGS when you sell inventory items in your invoices or sales receipts. The system will not update automatically update existing transactions. You'll have to open each transaction and toggle the item again. I still suggest reaching out to an accountant when adjusting your costs so we don't mess up your books. 

To help you track your inventory items, you can use this link for more details: Set up and track your inventory in QuickBooks Online.

Let me know if you have other questions so I can help you with them. Take care!

Hi, sorry this is where I am a bit confused. I updated the price of the inventory from the start date, but my reports still show the mistake COGS. Additionally, I went into one of the invoices and I 'saved' it again but it didn't update the COGS. How do I get the COGS to display properly on these reports?

Hello, Need2Learn. 

Thank you for reaching out to the Community. Some products and services types will not automatically update in QuickBooks Online (QBO). For inventory types, the update will only take effect the future transactions after the update. 

You'll have to make them inactive and delete them. Then recreate the inventory adjustment you've set up to update it.  

To make them inactive. Please follow the steps below. 

1. Click on the Gear icon.
2. Select Products and Services which appears under Lists.
3. Then click on the drop-down arrow near the Edit button
4. Select Make inactive, then click Yes.

Then, let's recreate the inventory adjustment: How to create an inventory adjustment. Let's go to the Products and Services tab again to check if you've got the correct adjustments. 

Additionally, this guide provides an overview of how the inventory feature works in QBO. It includes instructions to modify the cost and initial quantity of an item: What is FIFO and how is it used for inventory cost accounting? 

For your reference, you can run inventory reports in QuickBooks Online so you'll be able to get the information you need. Please read this article for more information: Run Reports In QuickBooks Online. 

Stay in touch with me if there's anything else you need with updating your products and services. I'll be right here to help you. Stay safe!