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SuNami
Level 2

Cost of Goods Sold

We think the Quickbooks Inventory List Cost for Assembly Items is misleading and has caused us to undervalue our products.

 

Our Sales and Marketing department wants to know what we should be selling our products at to make a nice profit. We were using the inventory LIST "cost" column to make this determination, which made the most sense. However, we discovered this cost is not the same as what the inventory evaluation shows nor what is recorded in the financials when the item gets Built/Assembled.

 

The inventory evaluation indicates (accurately) the landed cost of inventory and uses Average costing.  We tried updating the cost of an inventory item used in your BOM to indicate cogs accurately in our Inventory List, but when a purchase order is produced to the vendor, that purchase price includes the added landed piece. NOT GOOD! Has anyone solved this issue? Is there a workaround? 

 

Quickbooks - Are you planning on fixing this?

1 Comment 1
Charies_M
Moderator

Cost of Goods Sold

Help is here, SuNami.

 

Let's isolate this concern by reviewing your inventory item cost. This will help us identify if the setup for item cost is correct.


In case you need the steps, here's how:

 

  1. From the Lists menu, then select Item List.
  2.  
  3. Double-click the item you want to change.
  4. Enter your changes in the Edit Item window.
  5. Choose OK.

Additionally, I recommend visiting the following article to view the frequently asked questions about the items in QuickBooks: Add, edit, and delete items.

 

If the item costs are accurate, you'll want to look into each transaction this time. To do this you can run the Inventory Valuation Detail.

 

Here's how:

 

  1. Go to Reports.
  2. Choose Inventory.
  3. Select Inventory Valuation Detail.

Also, you can run the Transaction Journal Report for the invoice/sales receipt and you'll see the Sales/Accounts Receivable transaction as well as the Inventory/COGS transactions.

 

All you need to know about tracking inventory assets and the cost of goods sold can be found in this article: Understand inventory assets and cost of goods sold tracking.

 

For more details about how inventory works in QuickBooks, check out these articles:

Don't hesitate to let me know if there's anything else you need help with managing inventory. I'm here to help anytime.

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