How do I get my cost/sales price to update the items each time I enter a new bill?

Let me share some information about the Cost and Sales Price works in QuickBooks Online (QBO).

Once you enter the amount in the Sales price/rate and Cost field, it will be the fixed value that will flow in the Item details when creating a bill. The one that will automatically be updated will be the qty on hand value. See the screenshots for your reference:

Alternatively, we can manually enter the amount on the Sales price/rate and Cost fields. Just in case you need to set pricing rules for specific products and services, check out this article for more details: Set price rules in QuickBooks Online. 

For reference, you can also look into these articles on how to manage inventory:

• Set up and track your inventory in QuickBooks Online
• Adjust inventory quantity on hand in QuickBooks Online

I want to make sure I've got you covered. You can click the Reply button below for follow-up questions and clarifications about managing your bill transactions. I'll be in touch. 

Hi there, I have got the same problem, once purchase order converted into bill the item cost not been updated automatically but the qty on hand. Is that mean we will have to calculate the average cost every time and do it manually under Product and services?  Thanks 

Good day, I have got the same query, is that mean we will have to calculate the average cost every time when we posted the purchase order to bill and manually adjust the item cost under Product and services? Thanks 

Welcome to the Community, @RitaPeng. I'm here to clarify the cost and sales price in QuickBooks Online (QBO).

You don’t have to calculate the average cost every time manually. QuickBooks Online can automatically update the cost of items based on the latest bill you enter.

Here’s how you can set it up:

1. Enable Inventory Tracking: Ensure the inventory tracking is turned on in your QuickBooks Online settings.
2. Enter Bills Correctly: When you enter a bill, ensure you select the correct item and quantity.
3. Automatic Cost Update: QuickBooks will automatically update the cost of the item based on the latest bill.

This way, QuickBooks will handle the average cost calculation for you, and you won’t need to adjust the item cost each time manually.

For more information, you can visit this article: Set up and track your inventory in QuickBooks Online.

Nevertheless, in case you need to adjust inventory quantity in QuickBooks Online feel free to browse this article for further assistance: Adjust inventory quantity on hand in QuickBooks Online.

If you have other questions about managing your bill transactions, feel free to comment down below. I'll be more than happy to assist.

@Eman_E appreciate your response, I have turned on the inventory tracking, created the Purchase Order and converted into Bill after that, then I found only Qty on hand updated as per Purchase Order, there is no amount under Cost still, should I manually add to each item or the result because I have missed any procedure? Should I leave the Cost as blank, and the system will still calculate the costs under the relevant chart of accounts? 

And where we can view the current average cost on each items in the system? Thanks Rita 

Great job activating the Inventory tracking feature and generating transactions for the items, Rita. I can address your queries about its cost and provide a way to view the average.

The cost is determined by the item's purchase history and is calculated from the beginning to the current date. As a result, it won't update after creating purchase orders and bills because it depends on the amount you've entered on the Products & Services page. In this case, you can manually adjust or add the cost for each item.

You're correct that the system will only update the Qty on hand after recording those entries. Moreover, it will display the breakdown of associated accounts in the Chart of Accounts, illustrating the transactions that affect the item.

Furthermore, run the Inventory Valuation Detail or Inventory Valuation Summary to observe the current average cost of an item and understand how they are affected. I'm adding some screenshots below:

Check out this material to instantly see your best sellers, the on hand, cost of goods, and more: Set up and track your inventory in QuickBooks Online.

Here's an article explaining how tracking items impacts your business reports: Impacts of inventory tracking on the Balance Sheet and Profit & Loss reports in QuickBooks Online.

It'll be my pleasure to help you manage your business and the movement of items to streamline production and maximize profits. If there's anything else I can do for you relating to sales or inventory, add them to this thread. I'll be right back.

@JamaicaA Thank you for your assistance I have run the report for the average costs. 

@JamaicaA Hi Jamaica, Thanks for your assistance, I have run the report with all the average costs on items