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How to Fix Incorrect COGS in QuickBooks Desktop

COGS stands for the Cost of Goods Sold by a company. When the company uses inventory goods, then they will […]

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COGS stands for the Cost of Goods Sold by a company. When the company uses inventory goods, then they will have to prepare profit and loss report also.

Sometimes, you may occasionally find that the Cost of Goods Sold on your Profit & Loss report has been computed improperly. Even after checking the item list, QuickBooks still displays a negative COGS or fails to even include the COGS number in the reports.

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Dancing Numbers helps small businesses, entrepreneurs, and CPAs to do smart transferring of data to and from QuickBooks Desktop. Utilize import, export, and delete services of Dancing Numbers software.

So, the purpose of the following article is to direct QuickBooks users on how to rectify inaccurate COGS in QuickBooks Desktop. Thus, you have to read the entire article so that you will get the conclusion with the help of instructions and steps, in case if you are curious about how to alter COGS in QuickBooks or how to fix the inaccurate COGS balance.

Causes for the Incorrect CGOS

Following are the reasons for the occurrence of incorrect CGOS in QuickBooks Desktop:

  • In case you have entered incorrect value of the item which is received.
  • The cost of the item once it was sold, it has been recorded even though it does not have a cost setup in the inventory.
  • The data which is being retrieved by QuickBooks Desktop POS is retrieving data from the wrong COGS account.
  • You made changes to the COGS account, but it was not reflecting in the POS.
  • The POS-recorded transactions were accidentally removed from QuickBooks Desktop.
  • Your inventory products are being sold separately after being bought in bulk.

Possible Solutions for the Incorrect COGS

Following are some possible solutions which are very helpful in fixing the incorrect COGS in QuickBooks Desktop:

Method 1: Verify the Amount for the Item Which is Sold and is Entered Correctly

  • First you have to select Sales and then choose item summary, from the drop-down menu of Reports.
  • Now in reports its time to modify so click on the Modify option, and click on Revert.
  • Now you have to sort the items starting that how you want to view it like with the Item Name section.
  • Search if any of the item is there which have $0.0 in the Ext Cost section now.
  • Make a note of the things which not have any setup costs.
  • Select Item List from the Inventory section.
  • Search for the item which is sold that how many times that item has been sold for free.
  • Select the Edit button on each and every.
  • Navigate to the item’s history and then select it.
  • Determine the complete selling price of the products.
  • Create a new journal entry in the QuickBooks Desktop Journal Entry section and then credits the money to the COGS account and debits it from the Inventory Assets.
  • If no items were located with a value of $0.0, proceed to the following step to fix inaccurate COGS in QuickBooks.

Method 2: Make Sure that the Correct Cost of Goods Sold Account is Set up Under Settings

  • First you have to open QuickBooks Point of Sale.
  • Now pick the Company option under Preferences.
  • Select the File tab from the list of menu option in preferences.
  • Navigate to the financial tab and click accounts from the drop-down menu of financial tab.
  • Be ensuring that you have selected the correct COGS Account for each and every listed item.
  • Now in the inventory section, select the list of items.
  • Navigate to the column header and select Customize Columns.
  • Now check wither the appropriate Cost of Goods Account is set there or not.
  • In case you discover a misconfigured COGS account in the settings.
  • Click on the Item List and select the appropriate COGS account.
  • Make a Journal Entry in QuickBooks Desktop so that you can transfer the appropriate amount to the COGS account.

Method 3: Removing if Any Adjustment is Made with the Error in POS

  • First you have to open QuickBooks Point of Sale.
  • Navigate to the Inventory Panel, select the Quantity Adjustment History.
  • Navigate to the column Header’s and select Customize Column button from there.
  • Now you have to add a Diff Cost to the selected columns.
  • Once you are done with all the above steps, click on the save button.
  • Always write down any quantity modifications which is made as a result of any errors in the Diff Cost section.
  • Now double-click on an entry.
  • In menu bar, navigate to the option that I wish to view Financial History.
  • Now you can view that from which account the money is being transferred to.
  • Select the Inventory and then select the Cost of Adjustment History option from the list of options.
  • Choose option to open the QuickBooks.
  • Click I wish to and then choose Reverse Memo from the Qty adjustment
  • Cost of adjustment history in case you have any adjustments which is done incorrectly.
  • Now in QuickBooks Desktop, you have to enter a journal entry in order to transfer the fund to the appropriate account.

Method 4: In the QuickBooks Desktop Check if the POS Transaction is Deleted

  • Select the Sales History section and then hit the I wish option.
  • Now you have to select the provided Financial Details.
  • In case if the Financial Details section indicates that the entry has been successfully sent to QuickBooks so in that case there is no option to open QuickBooks as the entry has likely been removed.
  • Navigate to the Financial exchange option in case the receipt is nowhere to be seen in QuickBooks Desktop, then choose to Resend that document under the Financial Exchange option.
  • Uncheck the Mark in the sent checkbox if any of the receipts have a status of “Not sent“.
  • The option is to be “Mark this Document as Successfully Sent” is chosen.
  • Now hit the OK button.

Method 5: Check if the Item is Received in Bulk and not Sold Individually

  • Check for the item which you have bought or entered in bulk, such as bricks or sand.
  • Now click on the Items under the Inventory sections.
  • Search for each and every item’s from the history.
  • Select Show Details from the drop-down menu of History.
  • Create a journal entry in the QuickBooks Desktop.
  • Enter the proper value of the item which you have to sold if your amount on your sales receipt is incorrect.

We hope the above article will help you in resolving the incorrect COGS in QuickBooks Desktop. In some cases, the above steps are not enough to resolve the issue. So in that case you can connect with Dancing Numbers experts via LIVE CHAT and we will help you in resolving the issue.

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Frequently Asked Questions (Faqs)

How can You Reduce the Cost of Goods Sales?

There are five effective ways to reduce the cost of goods of sales:

• Automation.
• Leverage Suppliers.
• Manufacturing offshore movement.
• Substitute the lower cost materials if possible.
• Buy the products in bulk and receive the discounts on it.

How Can I Change the FIFO in QuickBooks?

Follow the following steps in order to change the FIFO in QuickBooks:

• Click on the preferences and select the edit tab.
• Now you have to select the items and inventory from the left menu.
• Select the preferences of the company.
• Now you have to select the advance inventory settings.
• Once you are done with the above steps hit the FIFO Tab.

How can You Reset the Inventory in QuickBooks?

Following is the step-by-step procedure to reset the inventory in QuickBooks:

• Hit on the Add New tab.
• Now you have to select the adjustment of the inventory Quantity.
• Entre the date of Adjustment.
• From the drop-down menu of inventory adjustment account select the appropriate account.
• Now you have to select the product from the product field.
• Now you have to enter the each and every entry of the new Quantity and change in Quantity.

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Customization

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Dancing Numbers supports all QuickBooks entities that are mentioned below:-

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Invoice
Receive Payment
Estimate
Credit Memo/Return Receipt
Sales Receipt
Sales Order
Statement Charge

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Bill
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Purchase Order
Item Receipt
Vendor Credit

Banking Transactions

Check
Journal Entry
Deposit
Transfer Funds
Bank Statement
Credit Card Statement
Credit Card Charge
Credit Card Credit

Employee Transaction / List

Time Tracking
Employee Payroll
Wage Items

Others

Inventory Adjustment
Inventory Transfer
Vehicle Mileage

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Frequently Asked Questions

 
How and What all can I Export in Dancing Numbers?

You need to click "Start" to Export data From QuickBooks Desktop using Dancing Numbers, and In the export process, you need to select the type you want to export, like lists, transactions, etc. After that, apply the filters, select the fields, and then do the export.

You can export a Chart of Accounts, Customers, Items, and all the available transactions from QuickBooks Desktop.


How can I Import in Dancing Numbers?

To use the service, you have to open both the software QuickBooks and Dancing Numbers on your system. To import the data, you have to update the Dancing Numbers file and then map the fields and import it.


How can I Delete in Dancing Numbers?

In the Delete process, select the file, lists, or transactions you want to delete, then apply the filters on the file and then click on the Delete option.


How can I import Credit Card charges into QuickBooks Desktop?

First of all, Click the Import (Start) available on the Home Screen. For selecting the file, click on "select your file," Alternatively, you can also click "Browse file" to browse and choose the desired file. You can also click on the "View sample file" to go to the Dancing Numbers sample file. Then, set up the mapping of the file column related to QuickBooks fields. To review your file data on the preview screen, just click on "next," which shows your file data.


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How can I Import Price Level List into QuickBooks Desktop through Dancing Numbers?

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What are some of the features of Dancing Numbers to be used for QuickBooks Desktop?

Dancing Numbers is SaaS-based software that is easy to integrate with any QuickBooks account. With the help of this software, you can import, export, as well as erase lists and transactions from the Company files. Also, you can simplify and automate the process using Dancing Numbers which will help in saving time and increasing efficiency and productivity. Just fill in the data in the relevant fields and apply the appropriate features and it’s done.

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Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


Is it possible to use the Direct Connect option to sync bank transactions and other such details between Bank of America and QuickBooks?

Yes, absolutely. You can use the Direct Connect Option by enrolling for the Direct Connect service which will allow you access to the small business online banking option at bankofamerica.com. This feature allows you to share bills, payments, information, and much more.


Why should do you change the Employee status instead of deleting them on QuickBooks?

If you are unable to see the option to terminate an employee on your list of active employees on the company payroll, this mostly implies that they have some history. Thus, if you change the employee status instead of deleting it on QuickBooks, the profile and pay records remain in your accounting database without any data loss in your tax payments.


What are the various kinds of accounts you could access in QuickBooks?

QuickBooks allows you to access almost all types of accounts, including but not limited to savings account, checking account, credit card accounts, and money market accounts.

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