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Join nowMy question is about PO and COGS. We received today a PO with inventory products. Consequently, we processed the PO to receive the inventory in QBO following the process: New, Vendor, Bill, Add PO. Regarding quantities received, it worked well as the right quantity of products/SKUs were added to the inventory. But there were discrepancies in the costs: the PO was created using the purchasing cost we pay the supplier, which seems to be logical as a PO should reflect what we own. But, when the PO is received in inventory, the inventory value does not reflect the the weighted average cost (COGS) per product which is in the system, but the PO value.... How can the system enter automatically the products in inventory at average cost and not at PO cost? Thank you
Solved! Go to Solution.
PO's are non posting they do not affect any of the accounting
the key is the bill you entered. The costs per item for that total qty is what counts, double check your bill. And do not forget to add a portion of the shipping costs to each item, shipping costs (and any other cost) is part of item cost.
QBO works on FIFO, there will never be an overall average cost per item
PO's are non posting they do not affect any of the accounting
the key is the bill you entered. The costs per item for that total qty is what counts, double check your bill. And do not forget to add a portion of the shipping costs to each item, shipping costs (and any other cost) is part of item cost.
QBO works on FIFO, there will never be an overall average cost per item
I have a similar issue, however mine is in regard to adding a BILL from an international supplier.
I input the BILL with the values from the invoice given to me from our supplier. This way I know exactly how much I owe the supplier and the inventory is up to date. Now, under Products and Services each item has the COGS as the cost from the suppler + Duty and Shipping charges averaged.
When I check my Profit and Losses it is calculating based on the BILL price which is not correct. It should give me the profit based on the COGS value. I cannot add the average COGS price to the supplier BILL or that bill will not match their invoice.
Please help.
I have a similar issue, however mine is in regard to adding a BILL from an international supplier.
I input the BILL with the values from the invoice given to me from our supplier. This way I know exactly how much I owe the supplier and the inventory is up to date. Now, under Products and Services each item has the COGS as the cost from the suppler + Duty and Shipping charges averaged.
When I check my Profit and Losses it is calculating based on the BILL price which is not correct. It should give me the profit based on the COGS value. I cannot add the average COGS price to the supplier BILL or that bill will not match their invoice.
Please help.
Hello there, HamuBhau.
Thank you for reaching out to us with your concern about adding a bill from an international supplier.
First, we'll have to add the inventory items. As for the shipping fee, we'll have to add it as a service item and enter it as a negative amount.
Let me guide you how:
Then, you're good to add the shipping fee items. Here's how:
I've also added this reference on how we can pay bills: Enter bills and record bill payments in QuickBooks Online.
You can always reach out to me if you need anything else about adding a bill from an international supplier. I'm here for you. Have a good one.
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