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accounts@motorca
Level 1

Why does a Stock Adjustment calculate the Cost of Sales at the Starting Balance Price? The updated (increased COS) has been updated on the Product Information page

Starting Date:  1/10/21  Initial Cost:  R200   Initial Quantity 5 (assembled product / bill of materials)
30/5/22:  Product Sold Out
1/6/22: Cost Increase R300 (updated on Product Information tab)
30/6/22:  2 Products manufactured = Stock Adjustment(+2)  - COS Value R200
1 Comment 1
Rea_M
Moderator

Why does a Stock Adjustment calculate the Cost of Sales at the Starting Balance Price? The updated (increased COS) has been updated on the Product Information page

Hello there, @accounts.

 

Let me help you figure out why your stock adjustment calculates the cost of sales at the starting balance price in QuickBooks Online (QBO), so you can manage your sales and income transactions accordingly.

 

Based on your description above, you may not have updated the Sales price/rate field after making a stock adjustment on the Product/Service information page. That's why your cost of sales calculates at the starting balance price.

 

When you adjust the starting value of an item, you'll need to update the Sales price/rate field as well. This way, your cost of sales will calculate the new and updated price. Let's go back to the Product/Service information page to check. Here's how:

 

  1. Go to the Gear icon.
  2. Select Products and services.
  3. Find the item you need to review and click Edit under the Action column.
  4. Check the Sales price/rate field's info and make the necessary updates.
  5. Click the Save and close button. 80.PNG

 

Once you're done, go ahead and pull up a sales report (i.e., Sales by Product/Service Detail) from the Reports menu's Standard tab. This is to make sure your cost of sales shows the updated amount.

 

When everything is all set, you may want to check out one of our Help pages as your reference to further guide you in managing your inventory and products and services using QBO: Help for inventory management in QuickBooks Online.

 

Please keep me posted on how it goes in the comments below. If you have other concerns about stock adjustments and managing the cost of sales in QBO, I'm always ready to help. Take care, and I wish you continued success, @accounts.