Billed costs instead of average costs on the job profitability report

Hi there, VoteElections.

For now, the default method available in QuickBooks Desktop for inventory valuation is average costing.

Although, you also have an option to use FIFO, which is available in the Enterprise version. Using this option, the program computes inventory values based on the assumption that the first inventory items received are the first sold. Let me share this as a guide on how you can switch to this method: FIFO Options in QuickBooks Desktop Enterprise.

More details about how the program tracks inventory amounts are discussed here: 

• Understand inventory assets and cost of goods sold tracking
• https://www.firmofthefuture.com/content/inventory-errors-common-quickbooks-inventory-accounting-mist...

The Community is always here if you need anything else. 

Thank you for your response.  I appreciate all the help I can get here.  Unfortunately neither of these options will accomplish an accurate profitability report in my situation.  Also I am a little confused on why items purchased on a bill, assigned to a job/customer, added to the invoice from time/cost, aren't using actual cost.  The avg cost is used.  Why go through all the hassle of connecting the expenses if the items are just going to use avg cost instead of actual cost.  It makes more sense to me that I have a setting wrong or I set up an item or account incorrectly.  I would think that if I receive a normal inventory item, but purchased the quantity for a specific job and assigned the expense to the specific job, that it would use the billed cost on the report instead of an average cost.  Am I missing something?

Thank you for your response.  I appreciate all the help I can get here.  Unfortunately neither of these options will accomplish an accurate profitability report in my situation.  Also I am a little confused on why items purchased on a bill, assigned to a job/customer, added to the invoice from time/cost, aren't using actual cost.  The avg cost is used.  Why go through all the hassle of connecting the expenses if the items are just going to use avg cost instead of actual cost.  It makes more sense to me that I have a setting wrong or I set up an item or account incorrectly.  I would think that if I receive a normal inventory item, but purchased the quantity for a specific job and assigned the expense to the specific job, that it would use the billed cost on the report instead of an average cost.  Am I missing something?

I appreciate you for getting back to us here in the Community, @VoteElections.

Allow me to step in and provide clarifications about the report in QuickBooks Desktop Enterprise.

The Act. Cost column from the Job Profitability report should be based on the billed cost. To sort this out, I suggest we start with reviewing the billable expense and check if the item cost entered is correct.

Check out these screenshots for your visual reference:

You can also create a dummy customer job and inventory item to check if you're getting the same results.

If the problem persists, we can proceed with some basic troubleshooting to get you back on track. Please follow the steps found in the Update QuickBooks Desktop to the latest release article to ensure the software is up to date.

Once done, you can run the QuickBooks Tool Hub program to scan any issues going on with your QuickBooks. For more information about it, visit this article: Fix common problems and errors with the QuickBooks Desktop Tool Hub.

Additionally, I've attached some links below for your reference about running reports in QuickBooks, as well as how you can customize them further based on your needs:

• Understand reports
• Customize reports in QuickBooks Desktop.

Let me know in the comment section below if you have any other questions. Have a great day ahead.

Thank you for the help.  Here are some screen shots.  I have blocked out some sensitive information.  The 295 is the Job number.  The invoice amount is pulled correctly but the bill amount is not pulled at all.  The Freight expense is pulled from the bill correctly.  When I double click on it, it shows the cost linked to the bill.  When I double click on the item it shows the cost linked to the invoice and is using the avg cost.  This is why I feel like I may have a setting or item setup incorrectly.  I have downloaded the tools hub, but without having a specific error code I am not sure where to go from there.

Hey there, @VoteElections.

Thanks for being so accurate with your posts. It's helpful to narrow it down to provide further troubleshooting steps.

As mentioned by my colleague AlcaeusF, when you've downloaded the QuickBooks Tool Hub, you'll want to start by going to the Program Problems tab and running the Quick Fix my Program tool. Once the tool has ran, close QuickBooks, reboot your computer and check to see if you're still having issues.

Please let me know if you continue to have further issues. I'll be here every step of the way of getting you back to business. You can always count on us here in the Community to lend a helping hand. Take care!

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I tried running the quick fix my program tool.  It said system could not find specified path.  I didn't appear to change anything.

Hi @VoteElections,

I appreciate your prompt reply, as well as providing a screenshot of your current situation. Let me point you in the right direction for support with your query. 

At this time, I suggest contacting our Technical Support team for further assistance. They have the necessary tools to check the issue you stated above, and investigate as to why this happens. 

Here's how:

1. On your QuickBooks homepage, go to the Help menu.
2. Choose QuickBooks Desktop Help.
3. Tap the Contact us button.

Feel free to get back to me if you have other questions. I'll take care of them for you.