Setting Up Cost Of Goods Sold In QuickBooks

How To Set Up The Cost Of Goods Sold In QuickBooks?

Setting up cost of goods sold in QuickBooks is essential to accurately track profits and inventory. To do so, you need to create a COGS expense account and assign products to it. Then, track inventory levels and make adjustments as needed. Properly setting up COGS can help you understand the true cost of producing goods and enable you to make informed decisions about pricing and production. QuickBooks also provides various reports to help you analyze and track your COGS, making it an invaluable tool for managing your business finances.

The COGS is affected when you sell all the items on the sales receipt or invoices. After selling the inventory you can run the report of Transaction Journal for all these receipts and invoices.

You can add the new account using the Chart of Accounts in QuickBooks. After that, all the items are assigned to the accounts accordingly. You can manage and track these items easily.  With this, you easily get to know about the stock of your inventory left and sold. Also, you know about your expenses and profits with the items.

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Step By Step Process Setting UP Cost Of Goods Sold in QuickBooks

The method to set up the Cost of Goods Sold (COGS) in QuickBooks

1. In the QuickBooks account
2. Go to the QuickBooks Menu and then click on the Lists option
3. From further options select the Chart of Accounts
4. Now select the option Account which is the menu item
5. Then click on the New option for adding the new account to it
6. After that, you have to select the account type as Other Account Types
7. Click on the Cost of Goods Sold from the list of options shown to you
8. Then click on the button Continue
9. In the Number text box, type the Chart of Accounts number
10. Type the name in the Account name properly
11. To select your currency click on the drop-down arrow and select from the further options
12. Now fill in all the remaining necessary information according to the requirements
13. Click on the Save and Close button to save all the information for the new account
14. In the end, the new account is created.

The Cost of Goods Sold affects the average cost of the items and also the number of items available for sale. Each item’s cost is calculated according to the average cost of all the similar items available in the inventory. To do the correct calculation you have to run the Inventory Valuation Summary report.

For getting the average cost and quantity of items in the QuickBooks desktop account

1. Go to the Reports
2. Then click on the Inventory
3. Now select the option Inventory Valuation Summary
4. Set the dates to the All
5. After that, double-click the item in the question that helps you in showing the Inventory Valuation Detail report.

Help COGS Setup QB Pro, Premier, Enterprise

You can easily connect with the team anytime from anywhere as they are available 24/7 hours. The team QuickBooks Support Number is here to help you with all your issues and queries as they have many years of experience in resolving all the glitches you are getting in your account. You just need to dial the AccountsPro toll-free number 📞 1-516-472-4307, send an email to the AccountsPro team, or do a live chat with experts. The members of the team are glad to help you by providing all the answers to your queries correctly and properly.

Frequently Asked Questions(faqs)

How to run a cost of goods sold report in QuickBooks Desktop?

To run a Cost of Goods Sold report in QuickBooks Desktop, go to the Reports menu, select Company & Financial, and then select Profit & Loss Standard. From the customized report window, select the Profit & Loss Standard option. In the Modify Report window, select the Cost of Goods Sold checkbox and click OK. The report will then be generated.

How to enter the cost of goods sold in QuickBooks?

To enter the cost of goods sold in QuickBooks, go to the “+New” button and click on “Vendor” > “Enter Bills”. Enter the vendor name, the account for the cost of goods sold, the date, the amount, and any other necessary information. If you have inventory items, you can also enter them on the same page. Once you have entered all of the necessary information, click “Save and Close”.