Support?
(Toll Free Number)
(888) 306-6999

How can I adjust inventory without changing COGS?

Looking for help?
Talk to one of our experts to instant resolve your QuickBooks problem!

Instant Support
Toll-Free Number:
(888) 306-6999

24x7 USA Support

Solved: How can I adjust inventory without changing COGS?

 can add a bit more about the inventory management in QuickBooks Desktop and how it affects the Inventory Assets and COGS accounts.

When you set up the inventory item you have the option to enter the item Cost. Here’s how:

  1. Click the Lists menu.
  2. Choose Item List.
  3. Locate your inventory item and double-click it.
  4. Fill out the Cost field, under Purchase Information. Enter the cost of the item when you purchased it.

QuickBooks uses the weighted average cost to get the value of your inventory and the amount debited to the COGS account once you sell your inventory.

 Create an asset account called purchases and post all purchases of item for resale to that account.  Periodically, weekly, monthly, etc value the inventory on hand, subtract that value from the amount shown in the purchases account and do a journal entry for the answer to the subtraction
debit COGS for that value
credit purchases for that value

OR

2.  Post all purchases to COGS.  Periodically, but at least at the end of the year, you value the inventory on hand and do a journal entry.
debit the asset purchases account for that value
credit COGS for that value

Print the P&L
then reverse the journal entry
debit COGS for that same value
credit the asset purchases account for that value 

This last journal entry, moves the value of what was on hand at the end of year back to COGS so the cost will be counted against the new year sales.

Instant Support
Toll-Free Number:
(888) 306-6999

24x7 USA Support
If you'd like us to instant fix your error & issues, visit our "blog" page and then contact us for more information.
And if you have any comments or questions about this article, contact us
or Call Support Helpline (888) 306-6999 USA 24x7 Support

Request for support now and get instant help from experts.

Let's talk about your error, your issues, and trust our expert team to fix your issue asap. Fill the form below.

Disclaimer: Services are Provided by Intuit Inc & user may contact Intuit Inc Directly , We are working as a third Party Service Provider for Intuit Products where we have no relations with Intuit Inc. www.quickinfy.com is an indepnedent service provider website who does not claim to be an official website for Intuit and doesn't claim to be an official representative of all those logos or brands which are used on the website www.quickinfy.com, Information which is delievered on this site is unique. However We do not Provide any free support any user whosoever will ask for our services will be asked to pay a fee to get any technical or accounting support, we deals in Accounting Software, Remote support is also Available for user who are in need of our Services. We have ensured the most possible care for the uniqueness and completeness of the information provided on this website, we do not accept any liability for it.