Hello! I am using QBE Manufacturing and Wholesale v19.0.
I am concerned the Job Profitability Summary report does not appear to show actual cost correctly. Below is a straightforward example of what I am seeing.
We have inventory items that have a cost (Act. Cost) associated with them. We sell (Act. Revenue) those items for more than their cost. This ought to result in the correct profit ($ Diff) showing on the report. However, it does not appear to be picking up the cost of the inventory items. Here is one line item from the report:
This particular invoice has one inventory item and a couple of other bills associated with it. As seen in the screenshot below, the separate bills are picked up but the inventory item from the invoice is not:
Any ideas why the inventory item cost is not being picked up on this report?
Going to the invoice itself, it is clear that the inventory item has a cost associated with it:
I appreciate the details a lot, @SaulA.
Job Profitability report is constructed to find out how well your company is doing at estimating jobs, how much time is spent on each job, and the mileage expenses for each vehicle or job.
That said, when you invoice the customer for a billable item doesn't mean you're selling the item. The item will only show the cost when it is sold. When a purchase was made, it moved the money from your bank account (asset account) to the inventory asset account. Therefore, you haven't spent any money at this time so no COGS. You'll need to invoice and receive the payment for the item before COGS is realized.
Just in case you wanted to check more of business reports, you can read this article: Understand reports.
I'm also adding this article for reference: Tracking job costs in QuickBooks Desktop.
Please let me know if you have more questions. I'll keep my notifications open. Stay safe and healthy!
QuickBooks Desktop does average cost, FIFO in Enterprise is just average cost per purchase date. When you enter a purchase for more of that item, QuickBooks compares the new average cost to the average cost used when you sold what you do not have. If there is a difference, QB makes an adjustment entry to both inventory asset and COGS.
If you're getting high cost, then the issue is most likely that the item does not have an established average cost. Also, it is using the number in the cost block instead. Established average cost comes from purchases of the item, using the item tab you select the item, qty, and total cost of that qty.
With that said, I'd recommend reaching out to your accountant about this. They can help you interpret the details on the report and help you correct it. They know what's best for you and your books.
If you need anything else, please don't hesitate to ad more details so we can review it. Have a great day!
Now I am really confused. I'll restate the gist of my question without the details:
Job profitability is job revenue minus job costs. In our case, a major portion of the job are the costs associated with the material we sell as part of a job. Something is recognized as sold when it is invoiced. In accrual accounting, the associated costs are booked against a job when invoiced.
So my question is, why doesn't the job profitability report reflect cost AT ALL after it has been invoiced?
Good Morning, @Saul Ackovitz.
The Job Profitability Report summarizes job costs, projected profit amounts, billings, and percentages for each job. If it's a billable item, then the cost will show after it's sold like my colleague above stated. Once you invoice and receive a payment from the customer, then you'll be able to see COGS. If you need an additional eye on this matter, I recommend consulting your accountant. They'll be able to provide the best advice and explanation to your question. If you don't have an accountant, you can check out this link to help you out.
If you need any further assistance, just let me know. I want to make sure that your concerns are addressed. Take care!
This does not make sense to me or my accountant. QuickBooks correctly records the COGS and the revenue when the invoice is issued. It shows up everywhere you'd expect, including the P&L... except for the job profitability report, which shows the invoiced revenue but not the associated COGS.
This makes no sense from an accounting standpoint. What is the reason for this behavior?
Also, I have many instances on the job profitability report where the COGS never appears, even after payment is received. When I posed my initial query I chose a simple example, but I could post screen shots from other jobs clearly showing incorrect COGS.
My assumption is that I've configured something incorrectly. What needs to be in place for the profitability report to be correct?
Hello there, @Saul Ackovitz.
You didn't configure anything incorrectly. This is how the Job Profitability Report works in QuickBooks Desktop. I'm going to submit feedback to our Product Development Team about your concern. You can visit our Blog to see all the new features in our Products, as well as seeing what's coming in the future!
Let me know if you have any additional questions or concerns. I'm always happy to help. Have a beautiful day.
@Ashley H wrote, "You didn't configure anything incorrectly. This is how the Job Profitability Report works in QuickBooks Desktop."
Okay, good to know this is not a configuration issue. However, this does not address my overriding concern, which (as stated in my last message) is that there are many instances on the job profitability report where the COGS never appears, even after payment is received.
This cannot be correct, can it?
Welcome back, @Saul Ackovitz.
One of the reasons why you may be experiencing this in some instances is that the report hasn't fulled but received that information from that payment. The way to fix this problem is to clear your browsing history. This will allow QuickBooks to load as a fresh page to remove any errors or glitches that may stand in the way. Here's how to in the Google Chrome browser:
It's that simple. I'm always here to lend a helping hand, so if you have any other questions, please let me know. Wishing you continued success!
Forgive my frustration, please, but now I'm simply angry. What could clearing browser history possibly have to do with the operation of QuickBooks Enterprise, a desktop product that is not accessed via browser?
That aside, the behavior I am seeing from this report has been consistent (and incorrect) for weeks, across multiple computers and multiple users. It's not a browser issue.
This is not what we want you to feel, @Saul Ackovitz.
Let's perform some troubleshooting steps to isolate this issue. I recommend running the repair tool for QuickBooks Desktop (QBDT). Doing so fixes issues right away.
Before we start, I suggest to back up your company file in case we run into errors. Then proceed to these steps:
You can also check this article for more details: Repair your QuickBooks Desktop for Windows.
I also added this article that provides detailed steps on how you can generate reports to show the data you need: Customize reports in QuickBooks Desktop.
In case you have other concerns or questions, you're always welcome to post here anytime. Take care and have a great day!
@JasroV , I've verified that I am on the latest release for my version (v19; R12_51) and I have run the repair tool (which as far as I can tell had nothing to repair). What is your next suggested, "...perform some troubleshooting steps...", please?
Hello, @Saul Ackovitz.
Since you already performed the troubleshooting steps above. You can try to verify and rebuild data. It will help you resolve common issues in your data.
Before performing the troubleshooting steps, create a backup copy of your company file.
To verify and rebuild your data, here’s how.
Once done, rebuild your data.
Please check this article for more detailed information about verify and rebuild data. Verify and Rebuild Data in QuickBooks Desktop.
If the issue persists, I recommend contacting our Phone Support Team by going to the Help button in QuickBooks Desktop. They have the proper tool to check your account.
Please let me know if you need further assistance. Take care!