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GaWestern
Level 1

Why did it post huge COGS entries?

We posted a credit memo from a vendor for $300 due to some parts we returned. QB debits AP and credits Inventory for the $300, but somehow also debits COGS for $500k and credits COGS for $50k. I am extremely confused. Has anyone seen this before??

 

 

Solved
Best answer September 01, 2021

Best Answers
AlexV
QuickBooks Team

Why did it post huge COGS entries?

Hello GaWestern!

 

Thanks for the reply. Let me assist you with the vendor credits.

 

Ideally, QuickBooks Desktop also creates an entry for COGS when creating a vendor credit for a return cost at less than the average cost. This is to track the loss on the background of the credit.

 

On the screenshot you've added, you can double-click on the entries for COGS. That way, you'll have a detailed report and understand more where it came from.

 

I've added some links you can check. These will show you how to personalize the reports in QuickBooks Desktop:

 

Leave a comment again here if you have additional concerns. Take care!

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4 Comments 4
Candice C
QuickBooks Team

Why did it post huge COGS entries?

Hey there, @GaWestern

 

Congrats on making your first post here in the Community. Allow me to give you some helpful tips to get an answer to your question about COGS entries.

 

To be sure on this, I recommend consulting with your accountant. They'll be able to explain these details and give you the best accounting advice for your business. If you don't have one, click on this link to find one near you. 

 

If you have any other concerns about QuickBooks, feel free to ask. I'm always here to lend a helping hand. Have a wonderful day! 

GaWestern
Level 1

Why did it post huge COGS entries?

I am our accountant. The issue isn't 'what is COGS" or anything similar, it is why did QB post this part of the transaction with no tracing as to where it came from?

AlexV
QuickBooks Team

Why did it post huge COGS entries?

Hello GaWestern!

 

Thanks for the reply. Let me assist you with the vendor credits.

 

Ideally, QuickBooks Desktop also creates an entry for COGS when creating a vendor credit for a return cost at less than the average cost. This is to track the loss on the background of the credit.

 

On the screenshot you've added, you can double-click on the entries for COGS. That way, you'll have a detailed report and understand more where it came from.

 

I've added some links you can check. These will show you how to personalize the reports in QuickBooks Desktop:

 

Leave a comment again here if you have additional concerns. Take care!

GaWestern
Level 1

Why did it post huge COGS entries?

When I double click on the COGS portion of the entry, it just takes me back to the $300 credit memo. So if what you said is what QB did, then the average cost on these parts in QB is like $400 each (the $12,885.95 entry was for a qty of 36), however the parts we returned were only worth anywhere from $0.40 to $6.00. I think that explains what it did at least. We adjusted the part numbers on the credit memo to use the actual part #s and not a generic category of parts and that fixed the problem. Thank you!

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