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Trial User
Level 2

Cost of Good Sold

Why would all cash inventory purchases be showing up in cash profit and loss, when there are no sales to date?

7 Comments
Ryan_M
QuickBooks Team

Cost of Good Sold

Hi @Trial User,

 

Whenever you record a sale via a Sales receipt or a Receive payment from an invoice, QuickBooks Online requires you to enter a date. 

 

If you try to record a sale without a date, it will show you an error message, reminding you that a sale date is needed. To be able to record any sale without a date is quite unusual. If you could provide a screenshot I'd appreciate it. 

 

Speaking of cash basis reports, check out this article if ever you see unapplied cash bill payments on the Profit and Loss report: What to do if you see unapplied cash bill payment expense on your profit and loss.

 

I'll be around in case you need further assistance. Feel free to post a question below, and I'll be sure to get back to you.

Trial User
Level 2

Cost of Good Sold

I purchased $8,000 of inventory.  I created an invoice for a sale of $600 in which the cost of the inventory was $200.  The accrual profit & loss show a cost of goods sold of $200, which is correct.  The cash profit & loss shows a cost of goods sold of $8,000 and it should be $0.

 

ChristieAnn
QuickBooks Team

Cost of Good Sold

Hi there,Trial User.

 

Can you please provide a screenshot of the report and the invoice you've created and also the date of the payment so that I can assist you further and to check what is causing the issue.

 

 

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

Trial User
Level 2

Cost of Good Sold

Attached is screen shot of the report.  The inventory was purchased on I purchased inventory, the one invoice where I invoiced for sale and the cash P&L showing the total of the inventory purchases in cost of goods sold.

JasroV
QuickBooks Team

Cost of Good Sold

Thanks for the screenshots, @Trial User .

 

Cash basis accounting method in your Profit & Loss report counts income or expenses when you received a payment or paid the bill. Thus, it'll show 8,000 if you've paid the bill or the purchased order.

 

To learn more about the difference between cash and accrual accounting methods reports. I've got you this article for reference: Choose between cash and accrual accounting methods in reports.

 

Also, here's an article you can read in case you want to learn how to customize reports in QuickBooks Online (QBO): Customize your reports in QuickBooks Online.

 

I'll be around if you have other concerns or questions. I'd be happy to help. Take care!

 

 

Trial User
Level 2

Cost of Good Sold

I googled cash basis cost of goods sold and it seems that someone else has the same issue.  Is this being fixed or do I need to use desktop pro instead?

 


theaccountableartist
Level 1
Thursday

 

GraceC, I realize that I'm months late posting to this thread, but I have also seen that the only way to get an accurate report on COGS in QBO is to run an accrual-based P&L. The problem is that there are many small businesses who are on cash-basis accounting who have inventory and would want to see an accurate cash-basis P&L.

I used to use QB Pro and never had this problem in that version. Is there some reason why QBO can't offer the same functionality?

Cheer
Reply

 


Ryan_M
QuickBooks Team
Thursday

 

Hi @theaccountableartist,

We recommend customizing your P & L report and change it from cash to accrual basis. This is so you can see the correct gross profit amount.

As for the difference in the features available, this is due to the QuickBooks Desktop product being around longer compared to QuickBooks Online (QBO). Rest assured, our product engineers are working to integrate new features.

You can visit this page to stay updated on new features released for QBO: The QuickBooks Blog.

I also recommend checking out this article: Impacts of inventory tracking on balance sheet and profit & loss reports. It has a list of reports that we suggest you run them on an accrual basis.

Is there anything else I can assist you with? Place them in the comments below, and I'll get back to you.

JenoP
QuickBooks Team

Cost of Good Sold

I've checked the thread that you've shared and it looks like the request is still not available,Trial User.

 

For now, the COGS amount will only show in the report if a sale is already made.

 

You might want also to use a trial version of QuickBooks Pro to see if that suites better for your business needs. You can a download it here: Download a trial of QuickBooks Desktop

 

Please continue to add a reply below while trying out the Desktop version. We're always here to help you out. 

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