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rjkventuresllc
Level 1

Inventory Management

Hi, long-time QuickBooks Pro Desktop user here.  Our business is pretty plain vanilla and the current QuickBooks 2021 works very well for us.  Most of our items are Inventory Parts that we purchase or manufacture in large quantities and sell in small quantities. We sell primarily online and most of our Customer transactions are Sales Receipts.

 

We’ve decided to expand into a new business segment that deals in collectible vintage clocks.  The items are somewhat unique and cost and selling prices vary widely.  At any point in time, we anticipate that we might have up to 20 clocks, and we would be buying and selling them along the way.  This part of the business would be low volume.  We need to have this portion integrated into our current systems.

 

I don’t think I want to have a unique inventory item for each clock.  While it would probably work accounting wise, that seems unmanageable.

 

I don’t mind having a single inventory item called “Vintage Clocks” that I used to record the purchase with perhaps a unique description.  The issue I see is that when we sell the clock, I think that would result in an incorrect [average] cost and not the actual cost of that item.  If I try to make the single inventory item work, is there a way to enter the actual cost at time of sale, instead of using the average cost?  Is there an easy way to adjust it after a Sales Receipt is produced?

 

Any other options come to mind?

 

Thanks,

1 Comment 1
Kristine Mae
Moderator

Inventory Management

Let me share what I know about the average cost, Rjkventuresllc.
 

Average cost is the default settings in QuickBooks. Our program uses the weighted average cost to determine the value of the inventory and the amount debited to COGS once you sell an item. 

 

We're unable to manually enter the actual cost at the time of sale. You can only enter an item's quantity and rate. However, you may want to reach out to your accountant on the best or easy way to adjust the amounts after creating a sales receipt.
 

In the meantime, you may want to create separate inventory items for the clock with different costs. This way, you may get the correct average cost. 
 

I'll include this reference to help you learn how to compute for the average cost: Understand inventory assets and cost of goods sold tracking.

 

If there's anything else that you need, feel free to let us know. We're just one comment away. Keep safe!

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