Learn what to do when the COGS account in QuickBooks doesn’t accurately reflect sales in Point of Sale:
With the advent of technical complexities and ever-dynamic coding algorithms, QuickBooks Desktop has been profoundly impacted. The issues encountered by users of QuickBooks are uncountable. One significant error observed lately is the incorrect COGS error in QuickBooks Desktop. This error irritates users while they try to make certain adjustments to their Profit and Loss reports. This error primarily reflects a particular deviation in the cost of sold goods.
However, there are different facets to the error, all of which shall be dealt with within the purview of this article. By the end of this comprehensive article, users will be well-versed in the different approaches to resolving incorrect COGS in QuickBooks.
Reasons that instigate the Incorrect COGS error in QuickBooks Desktop
This QuickBooks error can be a result of different reasons, the primary ones being listed as follows:
- An Incorrect cost of items being received can embolden the incorrect COGS in QuickBooks Desktop.
- The COGS account employed by QuickBooks Desktop POS may be the wrong one.
- A scenario wherein a user buys large quantities and sells products one at a time. It can also provoke an Incorrect COGS issue in QuickBooks Desktop.
- Inadvertent removal of transactions from QuickBooks POS may lead to this error.
Different Solutions To Tackle Incorrect COGS In QuickBooks
This section shall enlighten you with various troubleshooting measures to rectify the Incorrect COGS in QuickBooks. Start right away from the first alternative and check if the error gets fixed after concluding the steps laid down within each alternative.
1st Alternative: Rectify The Cost Input Of Items
Implement the steps given below so as to double-check the input cost of items. The principal cause of the COGS error is an incorrect entry of the cost items.
- The user needs to initially choose the column heading for the Ext Cost column and match it to the item name. Note the names of items with a value of 0.00 or an inaccurate quantity before moving on to the next stage.
- Next, hit on Inventory, followed by the Item List
- Now, pick each item and tap on edit subsequently.
- The user needs to take the number of items sold from the History report and multiply it by the item’s cost.
- The subsequent step requires creating a journal entry in QuickBooks Desktop. It debits the inventory asset and credits the cost of goods sold for this sum.
- If there seems to be no item with a 0.00 dollar amount, then, in that case, the user should perform the following troubleshooting technique.
2nd Alternative: The COGS Account Created Should Be Correctly Set Up
The costs of items and preferences sold in QuickBooks should be correctly set up to avoid the incorrect COGS error in QuickBooks. In case the account is set incorrectly, then users will need to pick the Item List and opt for the correct COGS account corresponding to each item.
You may read also: Simple Steps to Resolve QuickBooks Error 6123
3rd Alternative: Deleting The Alterations Provoking The Issue
To start, the user must first launch QuickBooks POS and observe any faulty modifications. Follow the instructions as follows:
- Right-click any column header and choose Customize Columns
- After that, opt for Inventory, followed by the Quantity Adjustment History
- Enter the incorrect amount in the Diff Cost column and make the necessary quantity adjustments after adding Diff Cost to the choose column list.
- Now, hit on the Save button.
- The user then needs to double-click the edited entry and opt for I want to, followed by picking check it.
- Similar steps can be followed in order to check the cost adjustments by opting for viewing the Financial History. Then, follow it up by opening it in QuickBooks. Then, opt for the Inventory and finally hit on the Cost Adjustment History.
- Any erroneous/wrong alteration can be undone by the user by opting for I wish to, followed by choosing the Reverse Memo from Qty adjustment or Cost adjustment history.
4th Alternative: Inspecting For Any Deleted Transactions
The user should examine the removed transactions to verify if they cause the Incorrect COGS error. For that, the following steps should be conformed to.
- The user first needs to move to the Sales History section in QuickBooks POS.
- Subsequently, I wish option needs to be chosen herein.
- Afterward, opt for the 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 has likely been erased.
- However, in case QuickBooks does not contain the receipt, the user should opt for resending the document available under the next Financial Exchange option.
- Next step is to 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 conclude.
Time to bid adieu!
If you stumble across any technical intricacy while performing the solutions laid in this article, then feel free to reach to us via the helpline i.e., 1-800-761-1787 or the chat option. Our U.S based team of QuickBooks desktop support experts will make sure that the process of resolving incorrect COGS in QuickBooks Desktop becomes quite easy. With years of experience under our belts, we have laid trails of indomitable QuickBooks support services. So, reach out to our support team without any hesitation.