When the item cost is changed it doesn't apply to product cost in inventory we had to manually edit and update the cost price in product Is there any way to automate ?

Thanks for posting in the Community, @Asad Tariq.

You may have changed the item cost when creating or entering a transaction in QuickBooks Online (QBO). Doing this will not update the product cost in the inventory.

To automatically update the product cost, you need to change it on the Product and Services page. Here's how:

1. In QBO, go to the Sales menu at the left pane to get to the Product and Services page.
2. Locate the item, then click Edit at the right under Action column.
3. In the Purchasing information section, edit the cost amount, then hit Save and close.

For more information, please refer to this article: What is FIFO and how is it used for inventory cost accounting?

Please click the Reply button below if you have any other issues or concerns, and I'll get back to you right away. I'm always here to help. Have a great day!

I have followed the above steps but the COGS is showing "0". Why is this?

Hi @OJ6,

Thank you for posting here in the Community. I can share some clarification about the COGS account in QuickBooks Online.

COGS tracks all of the costs associated with the inventory items you sell. This account helps you calculate gross profits accurately in the system.

The amount will only increase if you sell an item. You can do this by adding the product to your sales transactions in QuickBooks.

There are three accounts you need to set up when creating an inventory. You can review the information and ensure it's correct to avoid issues with the figures. Check out this list for your guide:

• Expense = COGS
• Income = Your sales income account
• Asset = Inventory asset

If you need to update the item details, please refer to the steps provided by my colleague. I've also attached this screenshot for your visual reference:

I've also added a link you can use to learn more about the account types, which includes descriptions to help you categorize transactions in QuickBooks: Learn about the chart of accounts in QuickBooks.

Drop me a comment below if you need more assistance with the expense account. I'll be happy to help you some more.

So i was using desktop version, where did not have to pay monthly fee and it was doing cost update automatically. Now i am paying $$$ for online version and lacking so many basic features such as, No cost update in items, doesn't show average cost, no option to send statement automatically, can't see % margin when doing an estimate.

these are super super basin features for sales software. 

very disappointed