Bills are not posting to COGS, reporting incorrectly

I'm here to ensure that bills post to the right COGS Account in QuickBooks Desktop, @Blas425.

Let's open the item and make sure that the appropriate cogs account is selected. I'll show you how:

1. Open the Lists menu.
2. Select Item List.
3. Locate the item and double-click to open it.
4. Go to the COGS Account drop-down box to check.

I've added a photo for your reference.

Once you're good and you'd like to personalize the financial report, feel free to read this guide for the steps: Customize reports in QuickBooks Desktop.

You can always ping me if you need more help with COGS, reports, or QuickBooks. I'm always ready to back you up. Take the best care!

Thank you, Mich_S for your speedy and helpful response.

So you're saying this is an issue of individual item preferences? 

It is my understanding from our bookkeeper, that it is entire bills that are not posting correctly rather than individual items, but I will clarify and let you know. 

We also have "enhanced inventory" enabled and this seems to be causing mismatch between billing and item receipt, instead of matching item receipt references to bill references and removing the reference from available selections; it's creating unique reference lines which do not match with bills and remain in the "Open transactions" when entering bills. 

Not sure if all of these problems are related.

I appreciate you for coming back to the thread and adding extra details about your concern, Blas425. With this, I'll be sharing details on how  Enhanced Inventory Receiving or EIR works in QuickBooks Desktop. Then, I'll ensure you can manage your bills smoothly.

Turning on EIR in QuickBooks Desktop Enterprise separates Item Receipts from Bills and creates a new process for receiving and paying Items. This could explain why bills aren't being posted correctly and why there appears to be a mismatch between billing and item receipts, as well as why it's creating unique reference lines that don't match bills and remain in the "Open transactions" when entering bills.

Also, if you receive a Bill that has different costs compared with the connected Item Receipt, QuickBooks will modify the item cost on the Item Receipt even if the Item Receipt is in a closed period. Furthermore, QuickBooks Desktop recalculates inventory average cost every time a new Item Receipt is entered. These Item Receipts change the order of inventory transactions within each day and sometimes result in a small rounding error to the average cost.

Please keep in mind that once you enable EIR, you are no longer turning off this feature. You can open this article to see extra details: Turn on Enhanced Inventory Receiving (EIR).

Then, I suggest making sure that you're correctly setting up your bills and inventory to ensure everything is accurate when managing vendor transactions. You can click on this article on how to perform the process: Accounts Payable workflows in QuickBooks Desktop.

Lastly, you may refer to this article to see steps on how you can run reports that will tell you where your company stands in terms of expenses and accounts payable: Customize vendor reports.

If you still have questions related to bills in QBDT, don't hesitate to let me know by adding a comment below, Blas425. I'm always here to help. Have a good one!

Thank you for your reply.

So how do I correct this mismatch then with EIR? the unique line items created every time something is received is beginning to clutter up the open transactions and make it difficult to locate bills. I am aware that we cannot turn EIR without restarting our whole file basically, which at this point we can't do. 

But I do need a solid solution to removing these mismatches in the receiving/billing, respectfully, the links you provided do not answer my questions or elucidate how to correct the mismatch/unique line item creation. 

Good evening, @Blas425. 

Thanks for reaching back out on this thread. Let's work together to get this taken care of once and for all. 

Some customers have found it helpful to perform these actions: 

Create a dummy bill linked to all the false "open" item receipts when they get out of hand, pay it, and then use a general journal entry between the bank account and the inventory offset account to get the case straight while tying up all the loose ends. It will declutter the related transactions page when you're making bills and item receipts. 

Let us know if this worked for you. We're always here to have your back. Take care! 

Thank you for your reply,

Unfortunately I do not think that the solution of using dummy bills is a viable business solution since we receive dozens of bills a week. The amount of mismatched unique item receipts is rapidly building up, and we're only two months into the year. Is there any way to identify why these item receipts are not matching to the bills as they are supposed to be? Is there a checklist of likely problems that I can go through a process of elimination? 

Thank you again ahead of time for your answers and replies 

Hi there, Blas425. I can help you match your bills and receipts in QuickBooks Desktop (QBDT). 

In QBDT, there are reasons why you're unable to match your transactions. These are due to the following:

• Verify that the transaction has not been reconciled.
• Verify the transaction was entered using the same bank account.
• Make sure the transaction has not been previously matched to another bank-downloaded transaction.

Follow the steps outlined below to match transactions:

1. Go to the Banking menu. 
2. Select Bank Feed and pick Bank Feeds Center.
3. Open the Match Transactions window and from the Financial Institution dropdown, pick the correct bank account. 
4. Select the transaction in the $298.95 and $1 to match it. 
5. Click Match.

For the complete instructions, visit this article: Add and match Bank Feed transactions in QuickBooks Desktop.

For additional details about categorizing, reviewing, or matching receipts and bills, you can check this article anytime: Receipts and bills into QuickBooks. 

If you have any other questions about matching receipts, please let me know by adding a comment below. I'm always here to help. Have a good one!