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L
LailaH
January 24, 2022
Question

Inventory Adjustments vs COGS

  • January 24, 2022
  • 1 reply
  • 0 views

Hey everyone!

 

I need your help with understanding how Inventory Adjustment works.

I work in a company where we buy and sell products as they are, but many times we have to do adjustments because the category of the item had change but not the cost so I do the adjustments hitting the Cost of Goods Sold's account and everything was ok until now which I have an item where I did the adjustment but its taking cost 0 instead of the last cost we purchased it and because of that my inventory valuation of that item is wrong.

If you can help me to solve this, I'll appreciate it!

 

1 reply

M
MirriamMQuickBooks Team
QuickBooks Team
January 24, 2022

Hello there, @LailaH.

 

Thanks for posting in the Community space and providing detailed information about your concern with a screenshot.

 

Performing inventory adjustments is a critical action as this seriously affects your accounting. Thus, if you're unsure about making changes to your inventory, I recommend consulting with your accountant.

 

To edit inventory quantity adjustments, here's what you'll need to do:

  1. Click the Search icon on the toolbar.
  2. Choose Advanced search.
  3. In the Inventory adjustment account drop-down, select the appropriate account.
  4. From the All Transactions drop-down, select Inventory Quantity Adjustment.
  5. Click Search.
  6. From the search results, select the adjustment you need to edit.

 

For more details about the information above, see this article: Adjust inventory quantity on hand in QuickBooks Online.

 

For additional reference, here's a resource on how you can check your inventory to ensure you have an accurate count: Fix negative inventory issues in QuickBooks Online.

 

If you have any further questions or concerns, please don't hesitate to reach back out. I'm always here to help you. Take care and keep safe!

L
LailaHAuthor
January 24, 2022

Thank you for your answer @MirriamM 

 

As you can see, the qties are ok but the cost of the items are 0 instead of taking the last cost we purchased. So my question if I can not adjust the cost for those items, what else can I do to adjust it and have an accurate inventory valuation?

 

Thank you!

G
GebelAlainaMQuickBooks Team
QuickBooks Team
January 24, 2022

Hello, @lb207964. I can help you edit the item's cost.
 

You can only edit each item to adjust the cost. For the existing items, you can toggle them to refresh and save changes.

Here's how to edit an item's cost:
 

  1. Go to the Sales menu, then choose Products and Services. 
  2. Find the first item to edit the cost and select Edit.
  3. Scroll down a bit until you'll see the Cost field. 
  4. Update the cost.
  5. Then select Save and close.
     

Also, know that the changes made will affect future transactions.

You can check out this article learn how to change the item type for a product or service.

I've also added this article for your future help: Create invoices in QuickBooks Online.

Please don't hesitate to tap that Reply button if you need any further assistance on how to manage invoices. I'll get back to you as soon as possible. Stay safe!

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