How to Correct the Incorrect COGS in QuickBooks Desktop?

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Does you cost of goods sold (COGS) in QuickBooks desktop doesn't match in Point of Sale? Don't worry, this article will help you how to correct 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.