Steps to Troubleshoot Incorrect COGS in QuickBooks Desktop

Incorrect COGS error in QuickBooks is related to the Profit and Loss report and involves aberrations in the calculation of the costing of the goods sold. This article aims to rectify QuickBooks Incorrect COGS issue by addressing each and every cause instigating this accounting error. So make sure that you stick around till the end. The different aspects covered by this article encompass the various contributory causes behind Incorrect COGS, followed by relevant and effectual solutions to get rid of incorrect COGS in QuickBooks desktop.

 

What causes an Incorrect COGS error in QuickBooks?

The COGS-related aberrations are typically associated with an incorrect balance caused due to the following reasons:

•           The user mistyped the value of the item received.

•           The item's cost was entered after it was sold.

•           Data in QuickBooks Desktop POS is being retrieved from the wrong COGS account.

•           The COGS account adjustments made aren't showing up in the Point Of Sale.

•           QuickBooks Desktop lost the POS-recorded transactions for some reason.

 

Ways to rectify incorrect COGS in QuickBooks Desktop

After going through the various contributory causes leading to incorrect COGS, it is now the right time to proceed ahead with the implementation of various steps for resolving this issue.

1st Solution: Check the Cost of Item Sold

•           Click Sales, then choose item summary, from the Reports tab.

•           Select Revert after selecting Modify.

•           Sort the items starting with the Item Name section.

•           Now look for any products in the Ext Cost column with a price of $0.0.

•           Make a note of the items that don't have any costs established.

•           Click Item List beneath the Inventory section.

•           To find out how many products have been sold for free, click Edit on each item and then look at its History.

•           Determine the full selling price of the products.

•           Create a new journal entry in the QuickBooks Desktop Journal Entry section that credits the sum to the COGS account and debits it from the Inventory Assets.

•           If no items were discovered with a value of $0.0, proceed to the following step and rectify the inaccurate COGS in QuickBooks.

2nd Solution: Rectify the Cost of Goods Sold

•           Launch QuickBooks Point of Sale, click the File tab, then settings, and then choose Company.

•           Choose Financial, followed by Accounts.

•           Make sure the appropriate COGS account is chosen for each listed item.

•           Select Item List from the Inventory area.

•           Select Customize Columns from the Column Header, and then verify that the appropriate Cost of Goods Account is specified there.

•           Click the Item List and select the appropriate COGS account for it if you discover an improper COGS account set up under the settings.

•           Launch QuickBooks Desktop and create a Journal Entry to transfer the appropriate COGS account's value.

 

3rd Solution: Deletion of any Adjustments

•           Launch QuickBooks Point of Sale, then click Quantity Adjustment History under the Inventory column.

•           From the column header, select Customize Column.

•           Add a Diff Cost to the selected column now, and then click Save.

•           Make a note of any amount modifications necessary as a result of errors in the Diff Cost column.

•           Double-click an entry and then select I want to view Financial History to view the account to which the funds are being transferred.

•           Select the Cost Adjustment History option after clicking Inventory and selecting the Open in QuickBooks option.

•           Click I wish to and then choose Reverse Memo from the Qty adjustment or Cost adjustment history if you identify any adjustments that were made incorrectly.

•           In QuickBooks Desktop, make a journal entry to transfer the fund to the appropriate account.

 

4th Solution: Double-check deleted Transactions

•           Opt for I wish to from the Sales History section.

•           Select Financial Details to Display.

•           If the financial information has been sent to QuickBooks Successfully status, but there is no option to open the file in QuickBooks, the entry has likely been erased.

•           If QuickBooks Desktop does not contain the receipt, choose to Resend this document under the next Financial Exchange option.

•           Uncheck the Mark as sent checkbox if any receipts have a status of Not sent and the option to Mark this document as successfully sent is chosen. Then click OK.

 

5th Solution: Bulk items should not be Sold Individually

•           Select Items from the Inventory area, then look through the items you've bought or inputted in quantity.

•           View each item's History by selecting Show Details.

•           Create a journal entry in QuickBooks Desktop and enter the proper value of the item sold if the amount on your sales receipt is incorrect.

 

Conclusion!

The solutions listed within this article should have helped you in resolving QuickBooks incorrect COGS error. For additional support for solving this error or a wide range of other technical errors in QuickBooks, you can directly call us at 1 800 761 1787 and let our certified QuickBooks experts deal with the issue until it gets completely fixed.

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