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Community Contributor *

Resetting Average Cost

I work for a company that sells different lengths of metal roofing. I have one sku for that particular item as it is ordered at different lengths with every order, so each PO has a different cost for that item since the cost is based on a linear foot price.  We have now run into an issue that QB has assigned an average cost that is incorrect. If I order a panel that is x long it believes the cost of that is substantially higher than it is. Then when invoicing out it shows a loss. How do I correct this? I have reached out to our accountant, however they were unable to help get this resolved.  

5 Comments
Moderator

Re: Resetting Average Cost

Thanks for the details, RyanSupply.

 

QuickBooks will calculate the average cost based on the item cost. Since an item has different price, you can use multiple unit of measure. This helps you track the cost per unit. 

 

Additionally, this feature is available on the QuickBooks Enterprise and Premier version.

 

You can also check for a third-party application integrated with QuickBooks to help the calculation done for you.

 

For more information about the unit of measure, you can check this article: Use single and multiple units of measure for items.

 

I'm just around if you have other concerns. Thank you.

Community Contributor *

Re: Resetting Average Cost

Is that only available in the more expensive versions of quickbooks? We have Desktop Pro 2017.

QuickBooks Team

Re: Resetting Average Cost

Thanks for reaching back out, @RyanSupply.

 

I'd like to provide further clarifications about the availability of the unit of measure feature in QuickBooks Desktop.

 

At this time, the ability to use the unit of measure to show the quantities, prices, rates, and costs for an item is only available to the Enterprise and Premier versions of QuickBooks Desktop.

 

To track the quantity of the metal roofing that you sell, I'd suggest calculating it manually and indicate in the description box what that item for. You also have the option to check for a third-party application that integrates with QuickBooks and does the calculation for you.

 

Lastly, I've got here some resources that you can read through for more insights about handling COGS in QuickBooks:

Feel free to leave a comment below if you have any other questions about this. I want to ensure you're all set. Wishing you and your business continued success!

Community Contributor *

Re: Resetting Average Cost

Another few questions for you:

- Can we purchase the primer version and upload the files we have into that program? 

- Is there a way to fix the existing issue, as it's causing issues with our P&L sheets? Showing a negative profit for the year due to this particular items being ordered almost every PO. 

 

Thank you!

Moderator

Re: Resetting Average Cost

Hello there, RyanSupply,

 

If you purchase Premier you can restore your file from your previous account. You'd have to create a backup first.

 

You'd want to do adjustments to fix the existing transactions to correct the negative amounts on your P&L. Moving forward, if you use the unit of measure, all the transactions will be correct.

 

Let me know if you got additional questions. I'll be around to help.

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