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tamaro722
Level 2

Adjust Cost of Goods for Previous Month

Hello, I need to adjust my Cost of Goods Sold for August - it was wrong. So I need to reduce my Cost of Goods Sold for this month of September, and adjust for August. Do I do a journal entry?

3 Comments 3
Jovychris_A
QuickBooks Team

Adjust Cost of Goods for Previous Month

Thanks for dropping by, @tamaro722.

 

Let me share some insights on how to reduce or adjust the Cost of Goods Sold for the previous month.

 

You'll need to set up an inventory adjustment account to track your adjustments. Make sure to update the inventory, and its status is correct.

 

Also, I'd suggest consulting your accountant for professional advice for the account adjustments. I'll add this article for the detailed steps on how to do it: Adjust your inventory quantity or value in QuickBooks Desktop.

 

In case you get issues such as negative inventory quantity, you can refer to this article on how to resolve it: Fix negative issues in QuickBooks Desktop.

 

Feel free to tag me on your comment below if you have more questions. I'm always here to help. Take care!

tamaro722
Level 2

Adjust Cost of Goods for Previous Month

Yes, we have the inventory accounts set up and know how to track it - I just need to manually know how to adjust the cost of goods sold to reflect it on August's report, not September, as the invoice this pertains to was in August.

Joseph_A
QuickBooks Team

Adjust Cost of Goods for Previous Month

It's good to have you back, @tamaro722.

 

The cost of each item in an inventory is calculated on the basis of the average cost of all similar goods in the inventory. You can run an Inventory Valuation Summary report to provide the quantity and average cost for each item to support the balance on the financial statements.

 

Here's how to do run the Inventory Valuation Summary report:

  1. Go to the Reports tab, then click on Inventory.
  2. Select Inventory Valuation Summary and set the dates to all.
  3. Double click the item in question to show the Inventory Valuation Detail report. It will populate how QuickBooks derived the item's average cost.

To give you more idea about the Cost of Good Sold feel free to read these articles:

 

Don't hesitate to reach out if you have additional questions. I'll be happy to assist you.

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