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Level 2

P&L not reflecting COGS

Hello,

My COGS on my 2019 YTD P&L are not correct. When I look at the Transaction Journal for a customer invoice I see that COGS accounts are being credited but nothing shows on P&L.  How do I fix this and make the change retroactive to when I began using QBO?

Thanks,

  Kim

Solved
Best answer 05-17-2019

Accepted Solutions
QuickBooks Team

Re: P&L not reflecting COGS

Hello again, @ktorres1.


Thanks for sharing additional details about your concern. I can help correct the amount posted on the report by creating a journal entry.


When updating the product’s type, changes only apply to future transactions. Create a journal entry for the amount to post on the period you started using QBO.


Since updating the items’ type and amounts involve different accounts, I recommend consulting your accountant for the correct debit and credit accounts to use.

 

Just in case, I'm adding an article with detailed information about the allowed type of item you can change in QBO: Product and Service types.

 

This should get you pointed on the right track. If you have any further questions or concerns about QBO, leave me a comment. I’ll jump right back in to assist further.

 

View solution in original post

ProAdvisor

Re: P&L not reflecting COGS


@ktorres1 wrote:

Hi vpcontroller,

Thanks for your input.  I suspected that this might be the case.  Originally the product was listed as Non-Inventory.  I have changed it to Inventory type but I don't seem to be able to make the change retroactive because I have several customer invoices with the product listed.  Is there a way to make the change effective 1/1/2019?

Thanks,

Kim


@ktorres1 Sorry, you can't make the retroactive transactions update from non-inventory to inventory type. But you can from non-inventory to service type (or vice versa). When you change the account, it will prompt with selecting the following checkbox.

Hope this helps!
 

View solution in original post

7 Comments
QuickBooks Team

Re: P&L not reflecting COGS

Hi there, ktorres1.

 

Thank you for posting here in the Community!

 

It could be the income account of the items are posted to Cost of Goods Sold. Let me help you on how to change into income so we can correct the amounts on the Profit and Loss report.

 

Follow the steps below:

 

1. Go to Sales on the left panel.
2. Click Product and Services.
3. In the search button, type the specific products that are added to your invoices.
4. Under Action, click edit.
5. You'll be routed into the Product/Services information page.
6. Select the income/sales account.
7. Click the Save and close button.

 

See this article for further information: Change Product and Service types

 

Please know that you're always welcome to post if you have any other concerns. We’re always here to help. Have a wonderful day!

Level 2

Re: P&L not reflecting COGS

Hi ChristieAnn.

Thank you so much for your response.  Unfortunately this doesn't appear to be the issue.  Looking at the specific product's Product/Services information page I see that the Income Account chosen is an income account and the Expense Account chosen is my COGS account.  Any other ideas?  :)

Thanks so much,

Kim

Level 10

Re: P&L not reflecting COGS


@ktorres1 wrote:

Hi ChristieAnn.

Thank you so much for your response.  Unfortunately this doesn't appear to be the issue.  Looking at the specific product's Product/Services information page I see that the Income Account chosen is an income account and the Expense Account chosen is my COGS account.  Any other ideas?  :)

Thanks so much,

Kim


Is it cash based? Try accrual

ProAdvisor

Re: P&L not reflecting COGS


@ktorres1 wrote:

Hi ChristieAnn.

Thank you so much for your response.  Unfortunately this doesn't appear to be the issue.  Looking at the specific product's Product/Services information page I see that the Income Account chosen is an income account and the Expense Account chosen is my COGS account.  Any other ideas?  :)

Thanks so much,

Kim


@ktorres1 

 

What's the Products and Services Type - Inventory, Non-Inventory or Service?

Only on Inventory type, it will post COGS when creating sales transactions. On non-inventory or service type, COGS expenses come from when entering expense transactions.

Level 2

Re: P&L not reflecting COGS

Hi vpcontroller,

Thanks for your input.  I suspected that this might be the case.  Originally the product was listed as Non-Inventory.  I have changed it to Inventory type but I don't seem to be able to make the change retroactive because I have several customer invoices with the product listed.  Is there a way to make the change effective 1/1/2019?

Thanks,

Kim

QuickBooks Team

Re: P&L not reflecting COGS

Hello again, @ktorres1.


Thanks for sharing additional details about your concern. I can help correct the amount posted on the report by creating a journal entry.


When updating the product’s type, changes only apply to future transactions. Create a journal entry for the amount to post on the period you started using QBO.


Since updating the items’ type and amounts involve different accounts, I recommend consulting your accountant for the correct debit and credit accounts to use.

 

Just in case, I'm adding an article with detailed information about the allowed type of item you can change in QBO: Product and Service types.

 

This should get you pointed on the right track. If you have any further questions or concerns about QBO, leave me a comment. I’ll jump right back in to assist further.

 

View solution in original post

ProAdvisor

Re: P&L not reflecting COGS


@ktorres1 wrote:

Hi vpcontroller,

Thanks for your input.  I suspected that this might be the case.  Originally the product was listed as Non-Inventory.  I have changed it to Inventory type but I don't seem to be able to make the change retroactive because I have several customer invoices with the product listed.  Is there a way to make the change effective 1/1/2019?

Thanks,

Kim


@ktorres1 Sorry, you can't make the retroactive transactions update from non-inventory to inventory type. But you can from non-inventory to service type (or vice versa). When you change the account, it will prompt with selecting the following checkbox.

Hope this helps!
 

View solution in original post

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