Question

Average Cost changed and now closed periods' COGS has changed.

Forum|Forum|5 years ago
July 14, 2021
12 replies
46 views

We use QBDE's average costing for valuing Inventories and COGS. I have a small team that uses our company file for ordering and shipping items. At each month end, I enter Quantity Adjustments to our on hand inventories. I ran some prior period reports and noticed my COGS and Inventory values had changed in periods that had been closed for several months.

I was able to track down the change in Inventory Valuation by Item using old backup files to compare against my live file. For some reason, a group of FG parts that historically had Avg Cost = $0.01 now suddenly have an Avg Cost value = $0.27. I cannot determine what caused the change in Avg Cost nor why the change went retroactive and changed financials in closed periods.

Can anyone help me correct the live file so my financials are back to pre-change amounts?

JenoP

QuickBooks Team

Let me help you get the Avg Cost Value get back to the correct amount, Yeazel.

Possible data damage in your company file might have caused the Avg Cost value to change. Let's use the Rebuild Data tool that can resolve common data problems in QuickBooks Desktop.

Here's how:

Go to the File menu, select Utilities, and then click Rebuild Data.
Click OK, then follow the onscreen steps to save a backup.
Let the tool repair your file. It may take some time. QuickBooks may seem stuck, but as long as you can move your mouse, the tool is working.
When the tool finishes, select OK.
Go back to the File menu, select Utilities, and then click Verify Data.
Let the tool check your file for data issues.

Once done, go back to the inventory report and check if the Avg Cost value has gone back to $0.01.

We might also need to run a couple of reports and take a closer look at your company file just in case the issue persists. To do that, please contact our phone or chat support teams so they can help you further with this. Here's an article where you can get their contact details: Contact QuickBooks Desktop Support.

I'd also like to share these additional articles about inventories just in case you might need them in the future:

Add a reply below or reach out to us anytime you need anything else when working in QuickBooks. We're always here to help and guide you.

A

amynhemani

This didn't fix my problem. My cost and average cost don't match, eventhough I have a a new business and a new quickbooks account.

A

amynhemani

Hello there, JS87.

Let me share more details about the cost and average cost that don't match in QuickBooks.

In this case, the Cost and Average Cost don't usually match since the total cost means the sum of all costs, including fixed and variable costs. The Average cost is calculated by dividing the total cost of goods available by the total items available for sale.

Additionally, QuickBooks posts the current average cost to COGS when you sell items that you do not have in stock. It then compares these costs to the average cost used when you sell items you purchase, and if there is a discrepancy, QuickBooks makes an adjustment entry to both COGS and inventory assets. For additional information on calculating average cost and reports that are useful for inventory management, see Understanding Inventory Assets and Cost of Goods Sold Tracking.

Let me know in the comment section if you need more help in accomplishing your other QuickBooks tasks. I'll be right here to keep assisting.

Hi,

I am not sure if IRS will be ok that there is a discrepancy of $20,000. I think started the business right is more important for me. QB didn't read the correct avg cost data through the IIF file.

Sign up

Login with SSO

Let's get you signed in

Login with SSO