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michael.mwangi
Level 2

Is it possible to use the actual cost price when passing stock adjustment in online quick books?

 
Solved
Best answer February 27, 2020

Best Answers
Rustler
Level 15

Is it possible to use the actual cost price when passing stock adjustment in online quick books?

@michael.mwangi 

 

Weighted average cost is an internet myth, QB does NOT use weighted average cost.  Weighted average cost is like when you were in high school, homework was a percent of the final grade, quizzes another percentage, and tests the major percentage of the final grade.

 

QB uses mathematical mean average, common average, total cost / total qty.  Since QBO is FIFO inventory that is average cost per purchase.

 

To answer your question, no you can not set the cost of an adjustment.  When you adjust the qty lower QB uses the cost of the oldest purchase still in stock.

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4 Comments
BettyJaneB
QuickBooks Team

Is it possible to use the actual cost price when passing stock adjustment in online quick books?

Hello there, @michael.mwangi.

 

I like to ensure we're on the same page so I can give you the right amount of information. When adjusting an inventory quantity in QBO, it doesn't require you to change its cost. That said, the price can still be used.

 

May I ask what specific actual cost price are you referring and which part in QBO would you like this to show? Any extra details about this concern will be greatly appreciated. 

 

I'll be keeping an eye out for your response on this. Have a good one!

michael.mwangi
Level 2

Is it possible to use the actual cost price when passing stock adjustment in online quick books?

Hello there, @BettyJaneB.

True quick books doesn't require one to change its cost. Once you input the quantities it does use weighted Average cost to reduce the cost of inventory. Suppose I bought some 10 items @$6.00 each. A need arises to adjust these items. At the time of adjusting the weighted cost of these items as per quick books would be like $6.50 because my subsequent purchases cost of the same item increased . The effect of the my adjustment will reduce the inventory by $65 instead of $60. So my remaining stocks will be understated by $5 hence the need to use the original cost while making the adjustment. Hopes we are on the same page now. Cheers 

Rustler
Level 15

Is it possible to use the actual cost price when passing stock adjustment in online quick books?

@michael.mwangi 

 

Weighted average cost is an internet myth, QB does NOT use weighted average cost.  Weighted average cost is like when you were in high school, homework was a percent of the final grade, quizzes another percentage, and tests the major percentage of the final grade.

 

QB uses mathematical mean average, common average, total cost / total qty.  Since QBO is FIFO inventory that is average cost per purchase.

 

To answer your question, no you can not set the cost of an adjustment.  When you adjust the qty lower QB uses the cost of the oldest purchase still in stock.

View solution in original post

michael.mwangi
Level 2

Is it possible to use the actual cost price when passing stock adjustment in online quick books?

Thanks @Rustler (Level 15) for the insights and clarification of Averages. 

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