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XL_Velo
April 23, 2021
Question

COGS and P&L discrepancy

  • April 23, 2021
  • 1 reply
  • 16 views

Hello again, I ran a Profit and Loss report and noticed that my COGS is only showing a few shipping transactions and none of my inventory items.

 

All of my inventory has a starting date and starting value, with a sale price and cogs price, so that is not the issue. In fact, when I run a COGS report, I get a sum of the COGS.

 

I also checked to make sure the funds are not sitting in an undeposited account, and they are not.

 

Please see the attached screenshot. What am I missing? Thank you.

 

 

1 reply

E
Ethel_AQuickBooks Team
QuickBooks Team
April 23, 2021

Hello there, XL_Velo.

 

I appreciate you reaching out to us here in the Community with your concern about the Profit & Loss report.

 

For the shipping COGS, it will not be included in COGS with inventory product if the shipping is not included in the cost of the item.

 

You may also check on how to customize reports in QuickBooks Online to add some options that you want with your reports.

 

If you have any other questions about running reports, please don't hesitate to reach out. I'm always here to help.

X
XL_VeloAuthor
April 23, 2021

Hi, I'm not concerned with those few shipping charges, I'd like to know why the 22K of inventory sales does not show up on the COGS portion of the P&L report. 

Angelyn_T
Angelyn_TModerator
Moderator
April 24, 2021

Hello, I tried this and it didn't work, but I figured out why. When QBO was started, it was started by someone else who set it as Accrual but it's much easier for us to use a Cash based system, even though we have inventory. We are a small shop and have no employees, and all invoices are paid within a day or two of being sent. I changed the accounting method in the advanced settings sometime last week as I have never filed taxes before (we just opened) so I figured I should change it to Cash before filing. When I toggle the P&L report back to accrual, my inventory sales show up in the COGS. This is great! But how can I get it to show when I'm used Cash based accounting as that is what I prefer to use going forward?

 

Thank you!


Thank you for getting back, @XL_Velo.

 

I appreciate you for performing some troubleshooting steps to get the correct balance of your report. I'm here to share with you some additional information about the Cash and Accrual methods of accounting.

 

Moving forward, please make sure to set the dates of your report correctly to get the accurate result when switching from Cash to Accrual and vice versa.

 

You can open this article to learn more about the difference between cash and accrual methods for QuickBooks Online: Choose between cash and accrual accounting methods in reports.

 

Moreover, you can skim through the topics from this link for more hints about handling your reports: Run reports in QuickBooks Online.

 

If you have any other questions, let me know by adding a comment below. I'm always here to help. Have a good one!

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