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Level 2

How can I revalue all my inventory items to a Standard Cost. Then moving forward, COGS will also be at Standard COst when I invoice a sale. Please help.

 
6 Comments
Level 15

How can I revalue all my inventory items to a Standard Cost. Then moving forward, COGS will also be at Standard COst when I invoice a sale. Please help.

QBO is FIFO inventory and you can not change that, nor is it legal to do so

 

FIFO is average cost per purchase with the oldest (oldest date) being sold first

Level 2

How can I revalue all my inventory items to a Standard Cost. Then moving forward, COGS will also be at Standard COst when I invoice a sale. Please help.

Hi Rustler,

I just want to revalue all my Inventory account to Standard Costs Inventory account and whatever is the variance is kept in another cost/inventory bucket.

 

So whenever I invoice a sale of my inventory on hand, the cost is at standard cost - COGS.

and whatever is the difference I can send to another cost bucket.

Moderator

How can I revalue all my inventory items to a Standard Cost. Then moving forward, COGS will also be at Standard COst when I invoice a sale. Please help.

Hello @Q-B Online User 1,

 

@Rustler is correct, QuickBooks always follow the first account selected when you initially created the inventory item. You'll want to manually change the COGS account before selling an item.

 

I'm adding this helpful article in case you need to adjust the quantity of your inventory items.

 

Reach to me if you have any other questions. Always around ready to lend a hand.

Level 15

How can I revalue all my inventory items to a Standard Cost. Then moving forward, COGS will also be at Standard COst when I invoice a sale. Please help.


@Q-B Online User 1 wrote:

Hi Rustler,

I just want to revalue all my Inventory account to Standard Costs Inventory account and whatever is the variance is kept in another cost/inventory bucket.

 

So whenever I invoice a sale of my inventory on hand, the cost is at standard cost - COGS.

and whatever is the difference I can send to another cost bucket.


Accounting just does not work that way for inventory.  Inventory is what you pay for it, and that cost per item is what should post to COGS when it sells.

 

purchases of inventory is an asset in QB, it is not an expense until sold.

Level 1

How can I revalue all my inventory items to a Standard Cost. Then moving forward, COGS will also be at Standard COst when I invoice a sale. Please help.

Hi Rustler

 

I get what you are saying but I import so wouldn't my incoming freight be part of the standard cost? I have the freight coming in as an expense but I have no way of apply the proper amount of freight for each item as part of the standard cost. I'm not sure I said that correctly. I'll rephrase if I need to.

 

LCryan

Level 1

How can I revalue all my inventory items to a Standard Cost. Then moving forward, COGS will also be at Standard COst when I invoice a sale. Please help.

L Cryan

 

You are right, it should be possible for certain businesses to value inventory at standard costing.

 

The difference goes to a cost of sales adjustment account, and could be written back for tax purposes/IFRS if needed.

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