Learn what to do when the COGS account in QuickBooks doesn’t accurately reflect sales in Point of Sale:
Did you know incorrect COGS in QuickBooks can lead to further mismatches in your financial records? An incorrectly recorded COGS can lead to an improper profit and loss report. COGS basically stands cost of goods sold by a company. At times, even after checking the item list, the QuickBooks accounting software might display a negative COGS or in the worst case it might fail to include the COGS number in the reports.
In such scenarios, it becomes essential for the QuickBooks user to correct the incorrect COGS by performing the right steps and procedures. And thus, to help you out in this process, here we are with this guide sharing the complete steps to correct the incorrect COGS in QuickBooks desktop.
What leads to Incorrect COGS in QuickBooks?
Here are some quick reasons why you can experience incorrect cost of goods sold in QuickBooks:
- One of the core reasons can be if you have mistakenly entered incorrect value of the item.
- Another reason can be if the cost of the item once it was sold has been recorded.
- You can also end up in incorrect COGS if the data being retrieved is from the wrong account.
- Or if the changes made to the COGS account doesn’t reflect in POS.
- Another reason causing this error in QuickBooks is if the inventory products are being sold separately after being purchased in bulk.
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Methods to rectify incorrect COGS in QuickBooks
Here are some possible solution steps that you can perform to eliminate incorrect COGS in QuickBooks desktop.
Method 1: Verifying the amount for the item sold and entered correctly
- You need to first choose Sales and further go for Item summary.
- And then, you need to modify the reports by clicking on the Modify option and further click on Revert.
- The user will then have to sort the items starting that how you wish to view it like with the Item name section.
- The next step is to look for item having $0.0 in the ext cost section now.
- Also, note a few things that doesn’t have any Setup costs.
- Now, choose Item list from the inventory section.
- Look for the item that is sold that how many items that item has been sold for free.
- Choose the Edit tab.
- And further head to the Item’s history and then choose it.
- You need to complete Selling price of the products.
- You also have to create a new journal entry in QuickBooks journal entry section and then credits money to the COGS account.
Method 2: Check if the item is received in bulk and not sold individually
- Here, you need to check for the item that you have bought or entered in bulk.
- Also, click on the items under the Inventory sections.
- You can further search for each and every item’s from the history.
- After this, choose Show details from the menu of history.
- And then, Create a journal entry in QuickBooks desktop.
- Also, enter the proper value of the item that you have to sell if the amount on the sales receipt is incorrect.
You may read also: Simple Steps to Resolve QuickBooks Error 6123
Method 3: Make sure that the correct COGS account is setup
- The very first step here is to open QuickBooks POS application and then move to the File menu.
- And then, choose Preferences option and then select the Company option.
- After this, you need to click on Financial and then choose Accounts opt.
- You will then have to verify that the correct COGS account has been selected for each listed item.
- Choose the Item list option from the Inventory section.
- Also, go for the Customize columns from the Column header.
- The next step is to check and verify that the Set cost of goods account is correct.
- In case the account is not correct, you need to click on the Item list and select the Correct account for it.
- After this, open the QuickBooks and then create a journal entry to transfer the amount to the correct account.
Method 4: Inspecting for any Deleted Transactions
- The user first needs to move to Sales History section in QuickBooks POS.
- After that, select I wish option.
- Then go for Financial Details to Display option.
- In case the financial information is sent to QuickBooks Successfully, the status shows, but there is no option to access the file in QuickBooks, then, in that case, the entry might have been deleted.
- However, in case QuickBooks does not contain the receipt, the user should opt for resending the document available under the next Financial Exchange option.
- Now deselect the sent checkbox if any receipts show a Not sent status and if the option to Mark this document as successfully sent is chosen.
- Finally, hit on Ok to complete the step.
Also Read: Fixation of QuickBooks Desktop Update Error Code 16026
Conclusion!
Correcting cogs in QuickBooks desktop isn’t a huge task, especially when you know what steps are to be followed. With this segment, we have tried to provide you with the entire set of steps that you can follow and fix the cost of goods sold in QuickBooks. If you continue to face the issue or if you are stuck at some point, then you can definitely reach out our QuickBooks desktop support experts at 1-800-761-1787, and your queries will be addressed by our team immediately.
FAQs
COGS is knows as Cost of Goods Sold. It indicates the direct costs incurred in the production or acquisition of the products.
Incorrect COGS in QuickBooks desktop can occur due to various factors like incorrect inventory settings, incomplete purchase orders or inaccurate sales orders.
Yes! you can use different third-party tools to fix incorrect COGS in QuickBooks Desktop.
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