Accurate Costs of Goods Sold

Hi, @Jlaz1. Let me share some insights about setting up a system to charge inventory items In QuickBooks Desktop (QBDT).

Please know that we're unable to charge an inventory item taking effect from a date in the past. If there are changes in the price, that will take effect in the future. 

Moreover, you can record an adjustment every now and then to keep your inventory status in QuickBooks accurate. Before doing so, it's best to reach out to your accountant for advice before you adjust inventory value. If you don’t have an accountant, we can help find one near you.

To begin, you need to set up your inventory adjustment account. Follow the steps below:
 

1. Go to the Company menu and then Chart of Accounts.
2. Select the Account ▼ dropdown, then New.
3. From the Other Account Types ▼ dropdown, choose Cost of Goods Sold.
4. Name this account “Inventory Adjustments”, and then Save and Close.

Once you set up your adjustment account, you can adjust a product’s quantity, value, or both. Refer to Step 3 in this article which details the process: Adjust your inventory quantity or value in QuickBooks Desktop.

Furthermore, QuickBooks Desktop provides several reports that cater to your business needs. You can generate a certain report to take a look at your inventory status. 

If you have further questions or concerns concerning inventory items in QBDT, leave your reply below. The Community team is always around to help.

Thanks, Nicole.  This is not the answer I am looking for.  Rather, I am looking for the correct procedure to set up an accrual in Quickbooks to charge costs committed to but not invoiced as yet.  

Thanks again for your assistance.

Thanks Nicole for your response.

This is not what I am looking for.  Rather, I would like the procedure to set up an accrual in QuickBooks to charge for expenses committed to but not yet billed to me.

Thanks again.

Thank you for the response, Jlaz1. 

You can create a bill in QuickBooks Desktop for received services or items to be paid later. Process a bill payment once you sent your payment. If you've paid it on the spot, write a check or record an expense. When you run a report, set the report method to Accrual. Accrual reporting records transactions when they are incurred. You can check this article for more information: Accounts Payable workflows in QuickBooks Desktop. 

You can also process a journal entry transaction in QuickBooks Desktop to move or post amount to transfer money between income and expense accounts. Refer to the following article: Create a journal entry in QuickBooks Desktop for Windows or Mac.

Let me know if you mean something else or if you need further information about your account. I'm always here to answer them for you.