How can I get the Cost of Goods sold to show up in monthly profit/loss reports? If I do a quarterly p&l it will show up, but not monthly.

wholesale · ‎October 15, 2018

Rustler · ‎October 15, 2018

In cash basis reporting for sales, COGS is only posted when the sale is paid
that assumes you have paid for the inventory purchase

You said, In my old desktop version, I could run a monthly report and see how much it cost me to purchase the products I sold that month. In the online version, the only things that show up in cost of goods sold are products I've paid for that month, whether I have sold them or not.

IF you are using inventory type items, then the purchase cost does NOT show in COGS (cash or accrual) until the item sold. If it has been showing in cogs, then either you have the inventory item set up wrong, or you are recording the purchase incorrectly

Inventory items have three accounts
expense = COGS
income = your sales income account
asset = inventory asset

See this for a How To Receive Inventory Items. (desktop)
http://onsale-apparel.com/Rustler/tag/how2-rcv-inven

though this link explains desktop, the concept is the same in QBO except you use the item details part of a purchase instead of the item tab which is shown.

you do have to turn on that item details part for some strange reason, in company settings>expenses>bills & expenses turn on the items table and purchase orders

View solution in original post

Rustler · ‎October 15, 2018

In cash basis reporting for sales, COGS is only posted when the sale is paid
that assumes you have paid for the inventory purchase

You said, In my old desktop version, I could run a monthly report and see how much it cost me to purchase the products I sold that month. In the online version, the only things that show up in cost of goods sold are products I've paid for that month, whether I have sold them or not.

IF you are using inventory type items, then the purchase cost does NOT show in COGS (cash or accrual) until the item sold. If it has been showing in cogs, then either you have the inventory item set up wrong, or you are recording the purchase incorrectly

Inventory items have three accounts
expense = COGS
income = your sales income account
asset = inventory asset

See this for a How To Receive Inventory Items. (desktop)
http://onsale-apparel.com/Rustler/tag/how2-rcv-inven

though this link explains desktop, the concept is the same in QBO except you use the item details part of a purchase instead of the item tab which is shown.

you do have to turn on that item details part for some strange reason, in company settings>expenses>bills & expenses turn on the items table and purchase orders

wholesale · ‎October 15, 2018

That's exactly what I have been trying to say. In my old version, COGs posted when a sale was paid for. But in the online version, if I run the report in accrual, the cogs that post are from invoices I wrote that month whether or not I have paid for them. If I run it in cash basis, the only COGs that show up are inventory purchases I made that month, even if they were items I have not yet sold. This makes no sense to me. I am trying to run a report that shows me sales I received payment for last month AND the COGs for those particular items.

wholesale · ‎October 15, 2018

I also checked the settings like you mentioned (the items detail part) and they were already on. Not sure what else to do.

Rustler · ‎October 15, 2018

When you make an inventory purchase, are you using the item details part of the purchase, and insuring there are no accounts listed in the account section at the top?

In accrual, the item is stocked with cost and qty regardless of whether it is paid for or not - that is normal.
In cash basis, the theory is the item is only stocked when it is paid for.

push comes to shove, log out, clear the browser cache, close and reopen the browser and report again see if that helped

wholesale · ‎October 15, 2018

I am using the items detail but also have the Prepaid expense account listed. We have to prepay half of each bill months before receiving the product so when I prepay, it shows as a credit to Prepaid expenses which is set up as an asset. When I receive the product, I enter the bill using the items detail. Then I enter the amount I prepaid as a negative amount so that prepaid expenses is debited for the amount prepaid. So a bill for $4000 will show a -$2000 in the prepaid expense account and a remaining $2000 owed.

Rustler · ‎October 15, 2018

That is the way to do it, so it should work

try clearing the cache as I suggested, if that does notwork, call intuit, this is a weird one

wholesale · ‎October 15, 2018

I tried clearing the cache but it makes no difference. Spent an hour on the phone yesterday and this was the answer I got - If your business operates on a cash basis, you'll need to customize the P&L report and change the accounting method to Accrual in order to see the correct Gross Profit amount. That doesn't help me at all because it only shows COGs for invoices I wrote that month and I need to see COGs for invoices I received payment for that month. Maybe QBO can't do that. I'm ready to chuck it out the door and stick with my old desktop version.

Rustler · ‎October 15, 2018

I can understand your frustration, I would never use QBO for a real company that was subject to the IRS auditing, I have test files to help out here

a non partisan comparison of QBO vs QB desktop
<a rel="nofollow" target="_blank" href="http://onsale-apparel.com/Rustler/qbo-or-qbdt">http://onsale-apparel.com/Rustler/qbo-or-qbdt</a>

wholesale · ‎October 15, 2018

Thank you. That is helpful. QB desktop looks better all the time!

Rustler · ‎October 15, 2018

You're Welcome

Anonymous · ‎October 15, 2018

Hi wholesale,

Thanks for reaching out to us.

There's no limitation in QuickBooks Online that keeps Cost of Goods Sold (COGS) from showing up on a monthly Profit and Loss report. Just to make sure, I tested this in my company and COGS showed up just fine when I ran the report on a monthly basis (I've included a screenshot).
This means that there's probably either a data issue or a browser issue that's keeping it from appearing on your report. Usually it ends up being a data issue. For example, if there were no transactions during the time frame of the report that hit a COGS account, then the COGS category wouldn't show up. Let's make sure that the date range on your monthly reports include those dates on the weekly reports that have COGS transactions.
If we double check that and it still looks like the COGS accounts are missing, we can troubleshoot for any browser issues. Sometimes having too much data stored in the browser cache can cause unusual behavior. So, let's try clearing the cache and restarting the browser, then see if the report runs as expected. You can also try switching to a different browser.

Please let me know how it goes.

wholesale · ‎October 15, 2018

The problem is that we use the cash basis of accounting. In my old desktop version, I could run a monthly report and see how much it cost me to purchase the products I sold that month. In the online version, the only things that show up in cost of goods sold are products I've paid for that month, whether I have sold them or not. If I switch the report to accrual, it shows me the cost of each item I have invoiced that month, whether I have been paid yet or not. I am looking for a way to do what my old version did - see the cost of goods sold for products I actually received payment for that month.

JLonge · ‎November 04, 2018

I would love to see this test file but cannot. It brings up an error page,

We too have this same issue and have read of many others having the same issue. Inventory is in correctly but reports do not reflect the same information as QB desktop did. We run QB online for various reasons now but need to export and modify reports in order to get the correct information.

Cash reports show correct dollar amounts we are taking in but they do not show the correct cost of the goods sold. Correct cost of goods sold only show in an accrual report which of course shows me all my sales even if they haven't been paid in full. We pay our state sales tax on the actual amount of money taken in so our reporting is cash basis.

For us to get correct reports we need to run both cash and accrual, export to Excel, and modify the numbers. What a pain in the neck. I don't know why QB would change the way reporting is done between the desktop and online versions.

Malcolm Ziman · ‎November 04, 2018

"We pay our state sales tax on the actual amount of money taken in so our reporting is cash basis.

For us to get correct reports we need to run both cash and accrual,"

Do you need COGS for a sales tax report?

JLonge · ‎November 05, 2018

No, we don't need the COGS for tax reporting but we do watch the figures regularly. The reports are not correct like they used to be in QB desktop

booksbyschmidt · ‎November 12, 2018

I have Cost entered under product detail. When I enter a bill, the asset increases. When I sell the item, the assets/COGS are not being adjusted for value, it is showing $0.00 under the amount column for the invoice both under the Asset and COGS. The Income is showing up, but not the asset/COGS value.

Malcolm Ziman · ‎November 12, 2018

@booksbyschmidt wrote:
I have Cost entered under product detail. When I enter a bill, the asset increases. When I sell the item, the assets/COGS are not being adjusted for value, it is showing $0.00 under the amount column for the invoice both under the Asset and COGS. The Income is showing up, but not the asset/COGS value.

Are you using the same item in the Bill and the Invoice?

Is this item an inventory-type item?

Is the Bill date before the Invoice date?

Is the quantity in the Bill >= the quantity in the Invoice?

Is the unit cost price in the Bill > $0 (the cost entered in the item set-up screen is not relevant, unless you entered a quantity in the the item set-up screen )

If you answered Yes to these questions then you should have COGS, based on the unit cost price in the Bill/s

booksbyschmidt · ‎November 12, 2018

Yes to all of your questions....see attached image....am I missing something?

Malcolm Ziman · ‎November 13, 2018

What does the Inventory detail report show ?

booksbyschmidt · ‎November 13, 2018

It shows the quantities being adjusted but the FIFO cost still says $0.00 under the invoice item. The Bill shows the value increase but no decrease with the invoice.

Malcolm Ziman · ‎November 13, 2018

Can you post a screen shot?

booksbyschmidt · ‎November 13, 2018

See attached

Malcolm Ziman · ‎November 13, 2018

The opening balance is 148 units with zero value. The invoice is using up those zero units for the 10 units sold. Change the report to All Dates and if you delete the transactions that created those 148 units, that should fix the problem.

If it's an Inventory Starting Value transaction, change the qty to zero

booksbyschmidt · ‎November 13, 2018

oh got it! So it is using up all items that had zero value first...duh, FIFO, right? So once all zero value items are gone, then it will work....well, it's working now, but then it will assign value based on bill I entered

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How can I get the Cost of Goods sold to show up in monthly profit/loss reports? If I do a quarterly p&l it will show up, but not monthly.