Multiple INVENTORY pricing... price based on FIFO

Let me share insights about using FIFO in your inventories, APHInvestments.

QuickBooks Online uses the First In, First Out (FIFO) method for inventory cost accounting where the oldest purchased items are sold before the newer ones. The system then updates your assets and Cost of Goods Sold (COGS) accordingly. For more details, see this article: What is FIFO and how is it used for inventory cost accounting?

Also, to better assist you, could you please provide additional details regarding the specific tasks you intend to do or any challenges with the pricing? This will enable me to grasp the situation more effectively and offer you a precise solution.

Additionally,  I'll be sharing these links that will guide you in adjusting inventory quantities and running reports to always have an accurate count:

• Adjust inventory quantity on hand in QuickBooks Online
• Fix negative inventory issues in QuickBooks Online

If you have concerns regarding inventory or any questions related to QuickBooks, please feel free to reach out. I’m available to assist you. Stay safe!

If i have an item in stock list, and when i purchase an item for inventory, i assign it a cost and the Product that its attached to. But if you go to the Products page, it still reflects the old pricing (even when there was 0 qty in stock before new purchase).

Thanks for the prompt response, @APHInvestments. I want to provide additional information regarding the inventory items in QuickBooks Online (QBO) and see why those numbers don't match up as expected. I'm here to help clarify things and ensure your inventory management runs smoothly!

In QuickBooks Online, you may notice that the pricing for inventory items sometimes reflects older prices, even if your recent purchases have different prices. This occurs due to the initial setup of your product listings, which can display historical prices.

However, QuickBooks is designed to automatically adjust your assets and Cost of Goods Sold (COGS) whenever inventory sales occur. You can see these adjustments in a transaction report that shows another line for items with different costs.

For more details to help you understand the concept of FIFO in QuickBooks Online, see this article: What is FIFO, and how is it used for inventory cost accounting?

In addition, if you want to streamline your inventory process and get the most out of QuickBooks, don't hesitate to contact our Live Expert Assisted team! Our experts are always ready to provide personalized guidance and support, ensuring you can confidently navigate and optimize QuickBooks.

Additionally, run reports to see your sales and inventory status in QBO.

Comment below if you have other questions or concerns about managing inventory items. We'll be more than happy to help. Have a great day!

@APHInvestments 

The price on the product page has no affect on calculating COGS.  That field is just used to auto-populate a bill/expense transaction which you can override with the actual cost.  QBO is using FIFO when you issue an invoice/sales receipt.  You can confirm it by going to Reports > Inventory Valuation Detail.  Locate/filter for the valve.  Then locate the sales receipt.  It will show you exactly how the FIFO cost was calculated on each sales receipt.    

Thank you! Was this "recently" revised to work this way? When I started with QB online and Projects in 2020, I had tried that in the past, but it would pull the old pricing... seems like they fixed it since then and I always focused on the front page price.

Phew!

Thanks all!