Trying to adjust COGS on an invoice due to incorrect FIFO amounts

Thank you for getting in touch with us. I can assist you with your inventory issues, @jlazarchic.

If you have only one item in your Inventory Asset and there's no remaining quantity, then that asset account should also be zeroed. In your case, there might have been an adjustment made that directly affected the Inventory Asset account. To investigate this issue, I suggest running a report of the asset account and the inventory item to see the transactions that are affecting their values.

By running the item report, we can determine why the released COGS or price of the item has changed from $43.44509 to $37.58. We will then be able to decide on the next steps to correct your records with confidence. 

On the other hand, if the starting value is incorrect, the item will show zero asset value. In addition, a product adjustment may have been created. To resolve this, I recommend going to the Products and Services page and reviewing the item's configuration. Then, update the details to address the issue.

To do this, you can follow these steps:

1. Select Products and Services from the Sales menu on the left panel.
2. Select the item you're working on from the list and click the Edit button in the Action column.
3. Go to the Quantity on hand section and hit the Starting value link to see more information about the product.
4. To confirm the action, select Got it.
5. Check the item details on the Inventory Starting Value # Start page to ensure the data entered is correct.
6. Update the information if it is incorrect.
7. Save and close the window.

If an adjustment has been entered for the goods, double-check the data to ensure it is correct. Follow the steps in this article to verify the information. To view the complete instructions, go to the Edit or delete an inventory quantity adjustment section: Inventory Quantity Adjustment in QuickBooks Online.

To help you track your top-selling items and services, you can use reports to see your sales and inventory status in QuickBooks Online. Moreover, you can modify your reports in QuickBooks to show the correct data for each transaction. 
 

Here are some articles that will guide you on how to customize reports and create enhanced custom reports in QuickBooks Online:

• Customize reports in QuickBooks Online
• Create enhanced custom reports in QuickBooks Online

I am always here to help you with any other inventory concerns you may have. 

I have pulled the detail and reviewed it.

As late as 9/30 we had 0 inventory and 0 dollars.

Every transaction and inventory average is correct from 10/1 to 12/31

There have been a couple receipts below the old cost ($34 vs $37) but that is to be expected and reflected in the average carrying cost correctly.

Now on 12/31 the Inventory Detail Report is showing 27 units @ $37.58 which is what I want to write off to 0 and 0.  BUT when I go to Inventory Adjustment I am seeing 0 Inventory and $0 so I cannot write it off.

How does detail show one 12/31 balance and Inventory Adjustment shows another?

This is he other screen.

Hello there, @jlazarchic.

I understand how important it is for you to run your inventory detail report. However, to give you the most accurate response, I would like to ask for a detailed screenshot to identify the issue. Any additional information would be much appreciated.

In the meantime, you can check out this article to learn how to track your inventory in QuickBooks Online: Set up and track your inventory in QuickBooks Online.

Please do not hesitate to reply to the thread for additional assistance needed. I'll keep an eye out for it. Keep safe. 

detailed screen shot of?   the detail report?

Hello there, jlazarchic.

Allow me to join the thread and provide information on how you can adjust the COGS of an invoice.

In tracking inventory, QuickBooks Online uses the First In, First Out (FIFO) for inventory cost accounting. This means that the system will consider the first units purchased to be the first units sold, and will make adjustments to your assets and Cost of Goods Sold (COGS) whenever sales of inventory items are recorded.

If you enter the incorrect cost and initial quantity of the item during the initial set-up, it'll result in an incorrect value in the inventory asset account. To get this fix, you'll have to modify the cost of an item.

Here's how:

1. Go to the Gear icon at the top.
2. Select Products and services.
3. Locate the item and click Edit from the Action column.
4. Click the Starting Value link.
5. Click Got it. Keep in mind that changing the starting value may affect the initial value of your inventory.
6. Go to the Initial cost field and enter the correct cost.
7. Enter the correct Initial quantity on hand and as of date.
8. Select Save and close.

After performing the above steps, the units will be zero and $0.00 on 12/31.

To know more on how to track your inventory, see these articles:

• Set up and track your inventory in QuickBooks Online
• What is FIFO and how is it used for inventory cost accounting?

You can count on me for other inventory concerns you might encounter in the future. Feel at ease to add a reply so I can help you further. Have a great day!

@jlazarchic 

Go to your Inventory Valuation Summary report.  Find the item in question, click on the ASSET VALUE of that item, that will pull up the Inventory Valuation Detail report for that item.  Under 'Report period' select Custom and use dates 9-30-23 to 12-31-23.  Click Run report.  Post a screenshot of that.  If you had 0 qty on hand at $0.00 asset value as of 9-30-23, that report should help determine where things got off track.        

There are too many lines for a screen shot without doing a whole series.   Hopefully this PDF works.

The issue has changed a little if you didn't see in earlier post.  

It now shows 27 units and $1014 which is correct valuation, but if I try to do an inventory adjustment to remove the 27 units and year end at zero, the inventory adjust screen just shows 0 units available.  

This is the Inventory Adjustment option for 12/31

@jlazarchic 

"It now shows 27 units and $1014 which is correct valuation, but if I try to do an inventory adjustment to remove the 27 units and year end at zero, the inventory adjust screen just shows 0 units available."

Have you tried creating a $0.00 invoice dated 12-31-23 for the 27 units?  That will zero out the quantity (and hopefully the asset value) without recording any income.  You can set yourself up as a customer.