cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
GAL
Community Contributor *

If a bill is paid, why is check showing up in check register categorized as Credit Forward (when it is not) instead of Cost of Goods Sold?

 
6 Comments
Moderator

Re: If a bill is paid, why is check showing up in check register categorized as Credit Forward (w...

Good to hear from you today, GAL.

Let me share some information regarding the check showing credit forward in QuickBooks Online.

 

If you view the Check register, this will not show the COGS as the Cost of Good Sold is recorded from the bill where this payment is applied.

 

The COGS are recorded either from the Invoice or the bill that was created. The Check register will only show it as a payment to the Accounts Payable.

 

You can get more details in this article about the COGS: https://quickbooks.intuit.com/community/Help-Articles/Understand-Inventory-Assets-and-COGS-tracking/....

 

If you require more information about bills and COGS in QuickBooks Online, please let me know. I'm here to provide them for you.

GAL
Community Contributor *

Re: If a bill is paid, why is check showing up in check register categorized as Credit Forward (w...

Some liquor bills were from 'pay bills' and show up as credit forward but others are showing up as expense and listed as cost of goods.  Are the two different ways that are showing in the register going to mess up cog?  Or is it two separate ways to the same end.  I want to be consistent and would like to correct the entries sooner rather than later. Thanks for follow up.  Printed out your response!  G

 

Moderator

Re: If a bill is paid, why is check showing up in check register categorized as Credit Forward (w...

Hi, GAL.

Allow me to share additional information about posting of items in your COGS via QuickBooks Online.

 

If you enter bills or expenses in QuickBooks Online and those transactions are posted in COGS, then most probably you're using the COGS account instead of Inventory Asset.

 

To better isolate the issue and to correct the entries, you may want to check the account used for the items. Ensure that Inventory Asset is the default account.

 

Here's how:

 

  1. Click the Gear icon at the top menu bar and choose Product and Services.
  2. Choose an item and click Edit.
  3. Go to the  Inventory asset account.
  4. Make sure the account used is an Inventory asset and not COGS.

z.PNG

x.PNG

 

This way, the posting of entries will be corrected. I'm including you an article for your reference: How to change the account for a product/service item.

 

Get back to me if you need more information regarding expenses and COGS accounts in QuickBooks Online. You have a wonderful day.

GAL
Community Contributor *

Re: If a bill is paid, why is check showing up in check register categorized as Credit Forward (w...

I'll have to back and read your link in detail and then figure out how to correct for consistency.  When I accept liquor I go to:  '+', vendor, bill and fill in item details only.  When I do to pay the bill I go +, vendor, pay bill.  Some of the historical entries for paying liquors appear in the register as:  Uncategorized expense, cost of goods sold, 2800 credit forward. I'm all over the ballpark.  Thanks.

GAL
Community Contributor *

Re: If a bill is paid, why is check showing up in check register categorized as Credit Forward (w...

Just saw this reply so I will go back and try that.  Assume I can correct all the 'old' entries as well.

Moderator

Re: If a bill is paid, why is check showing up in check register categorized as Credit Forward (w...

Sending good vibes to you, GAL.

 

You know where to find me if you need more help. The Community is around your corner.

 

Have a good one.