QB is not adjusting inventory or making an entry in the relevant COGS account when i issue an invoice.
What might be causing this?
I tried posting screen shots of an inventory report and the relevant invoice but received "unexpected error."
Let me share some insights on how QuickBooks adjust your inventory, @byomtov.
QuickBooks will track how many inventory items remain in stocks after a sale or once the invoice is paid. If it doesn’t track once the invoice is paid, then we’ll need to create a sample company file to isolate this issue. Let me guide you how.
Once you’ve created a new company file, send a test invoice to your own email and check if QuickBooks adjust your inventory. If it does, then we’ll need to run the verify rebuild utility tool. This finds common issues in your software and fixes them immediately.
Here’s how to verify:
For more details in verifying and rebuilding your QBDT for Mac software, you can check out this article for reference: Verify and rebuild data in QuickBooks Desktop for Mac.
You can also check our QuickBooks for Mac Little Square page to learn some tips on managing your software effectively.
Additionally, you might want to use a private browser when posting screenshots on the Community page.
This way, we can check if the error is caused by stored data stored in your browser.
You can use these keyboard shortcuts in opening a private window.
If you’re able to post a screenshot of your concern, go back to your regular browser and clear its cache.
Let me know if there’s anything else you need help with in managing your inventory. I’ll be around to back you up. Keep safe and have a great day!
So you are saying that the inventory is not adjusted, and there is no entry to COGS, when I issue the invoice, but only when it is paid?
Is that right?
If so, then I don't have a problem, yet, since it hasn't been paid. I'll see what happens.
Still, that's a bit odd, since the amount of the bill shows up in sales as soon as the invoice issues, so my statements will be inaccurate.
That's right, @byomtov.
Inventory COGS is only affected when you sell inventory items on invoices or sales receipts (or paid invoices). You'll want to run run a report to view the accounts affected when you sell an inventory item. Let me guide you how.
With these steps, you're able to see the accounts affected of your inventory item. To learn more about inventory, please check out this link: Understand inventory assets and cost of goods sold tracking.
Feel free to also visit our QuickBooks for Mac Little Square page for more recommendations on managing your inventory items.
Please know that we're always here if you have other questions or concerns, so don't hesitate to swing by. Thanks for reaching out and have a lovely day ahead.
Thank you, but this is not clear to me.
Let me try again.
I ordered 3718 units of an inventory item. They duly showed up in my inventory. Fine.
Then I got an order for them - all 3718 - and I shipped them (actually my vendor drop-shipped them) and invoiced my customer $6 each, a total of $22,308.
This amount showed up immediately as a sale. Fine. But there was no COGS entry, and no reduction in the inventory. Now you say that that will happen only when the invoice is paid, not when it is issued.
That can't be right. That means that if I run a P&L it will vastly overstate my profits, because no cost will be associated with the revenue.
If I'm missing something please tell me.
Thank you for adding more details, byomtov.
Just a little bit on the declaration of COGS in addition to Shiella's reply. The reporting of COGS depends on your Report Basis (Accounting Method). If you're running reports on the Cash basis, the is COGS reported when the invoice is paid. If you're using the Accrual basis, the COGS is reported whether the invoice is paid or not. This method works the same way when declaring an invoice as a sale, where payment matters.
In your case, the invoice is still unpaid, but it's already declared as a sale on your P&L. Therefore, you're running the report on an Accrual basis, and you should see the COGS, too. You're right. It should be there.
For the troubleshooting steps, please be sure that the report dates cover the date of the purchase and invoice transactions of the item. That's it. Else, there's an issue with your data, and you can run the Verify and Rebuild utilities to fix it, as what JasroV shared.
Please feel free to share an update after doing the troubleshooting steps.
I did a verify and rebuild.
It did not help.
Here is a screen. The item in question is the bracket listed. As you can see, the inventory report shows me receiving 3718 units. This is correct.
But I issued an invoice on July 24 for the full 3718 units. It does not show up on the inventory report. This is mystifying.I would show you this but the system apparently only allows me to include one screen shot.
To explore I created a test item. I ordered 10 units and then sold them. The inventory reports reflected these transactions correctly, but does not do so with the brackets. Somehow, it is not linking the invoice with the product in inventory. Why not?
The Verify and Rebuild did not help.
To test matters I created a test item, of which I purchased and sold 10 units. The inventory report reflected these transactions accurately. But it doesn't want to do that with the item I am actually selling.
I have attached a screen shot of an inventory report as of 7/31/20. As you can see it shows that I have received 3718 units of the bracket. This is correct.
But on July 24 I issued an invoice to a customer for all these units. The report does not show this. Why not?
Apparently it doesn't link the items on the invoice to the items that were delivered. What are the possible reasons?
Thanks for getting back to us, byomtov.
Based on your screenshot, the date range and the Report Basis are correct. The report should now display the invoice associated with the item.
There are only three reasons that I can think of why the invoice is not displaying on your report. Aside from the data damage and report filters, it might be that we've assigned a different item on the invoice. I'd recommend reviewing the invoice for the last time.
If the item is correct and it still won't display on the report, I'd recommend contacting our Technical Support Team. They can help you review the transactions and reports.
We'll be right here if you need anything else.
I have discovered the problem.
It was on the invoice. I have two items with very similar names, one of which is not an inventory item. I was buying the inventory item and selling the non-inventory item.
Thanks for the help.