Why Is COGS Wrong in QuickBooks Desktop and How to Fix It?

Incorrect COGS in QuickBooks Desktop is an annoying issue encountered when users try to make changes to their Profit and Loss records in QuickBooks. This error is mostly caused by a difference in the cost of items. The current blog shall visit all the causes and troubleshooting methods to fix Incorrect COGS in QuickBooks Desktop.

 

Reasons that cause Incorrect COGS error in QuickBooks Desktop

•         Erroneous COGS in QuickBooks Desktop may be due to wrongly set cost of goods received.
•         An incorrect COGS account could be a possible cause of this error.
•         This error could also be caused due to removal of transactions in QuickBooks POS.

Fixing Incorrect COGS in QuickBooks

To fix incorrect COGS (Cost of Goods Sold) in QuickBooks, you can follow these steps:

Fix 1: Correct Cost Input of items

•         The user must initially choose the Ext Cost column header and match it to the item name. Before proceeding to the next step, make a note of the names of any items having a value of 0.00.
•         Click on Inventory and then select Item List.
•         Choose each item option and click on Edit.
•         The user should multiply the quantity of sold items from the History report.
•         The next step entails entering a journal entry in QuickBooks Desktop that credits the cost of goods sold for the amount and debits the inventory asset.
•         If there are no items with a value of 0.00, then perform the next fix.

Fix 2: Set up COGS Account correctly

To prevent the inaccurate COGS issue in QuickBooks, the costs of the goods and preferences sold should be properly configured. Users must choose the Item List and choose the correct COGS account for each item if the account has been set up incorrectly.

Fix 3: Delete unnecessary Modifications

•         Click on the Customize Columns option upon right-clicking any column heading.
•         Next, choose Inventory.
•         Click on Quantity Adjustment History.
•         Add Diff Cost to the select column list. Type in the erroneous amount in the Diff Cost column and modify it.
•         Click on the Save button now.
•         The user must then double-click the amended entry, choose I wish to, and then select Check it.
•         By selecting to see the Financial History, similar processes may be used to verify the cost modifications. The next step is to open it in QuickBooks. Finally, choose the Cost Adjustment History after selecting the Inventory.
•         The user can reverse any incorrect or improper changes by selecting I desire to, then selecting Reverse Memo from the Qty adjustment or Cost adjustment history.

Fix 4: Check for any deleted Transactions

•         In QuickBooks POS, first navigate to the Sales History section.
•         Here, click on I wish option.
•         Click on display financial details.
•         If the status indicates that the financial data successfully transferred to QuickBooks but there is no option to open the file there, then, the entry has probably been deleted.
•         The user should choose to resend the document accessible under the next Financial Exchange option if QuickBooks does not already have the receipt.
•         If any receipts have a Not sent status and the option to Mark this document as successfully sent is selected, the last step is to deselect the sent tick mark.
•         Finally, click on Ok.

Fix 5: Run a report

Generate a report to check the updated COGS figures. Go to Reports > Company & Financial > Profit and Loss Standard, and choose the appropriate date range. The report should show the updated COGS.

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Location: Everett, WA, USA

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