Cost Of Goods (Inventory) Sold; QuickBooks vs Accountant

Hi,

Quickbooks uses direct cost method compared to the nomal periodic method. Accountant usually will try to tie total purchases appear in the P&L and when they don't find it in QuickBooks P&L, they will be very lost. Just go to stock valuation detail report to filter selected transaction type for bill, bill credit and also check ( if you purchase by check). the total amount should tally with you purchases by supplier or items detail report.
Under direct costing method, when you purchase the system will debit your stock asset account instead of purchases, when you sell the system will auto reverse from stock asset and post to cost of goods sold account by invoice. That's why when you double click on cost of goods sold acct in P&L , you will only find invoices, again, this will puzzle the accountant, becos they actully expect to see bills here.
Quickbooks method will be able to show cost by item, just double click on your groos profit, and under total column select item details, you will see Gross profit by item, ( Positive amt is sales and -ve amt is cost).

Hope that you will find this useful

regards,
wpooi

Hi wpooi,

And thanks for your reply and suggestion.

While that could work it would ONLY work and reconcile if ALL lines on the transaction were for items or inventory tracked and posted when sold or otherwise accounted for to a cost of goods sold account. however many if not, most of my 'purchases' (bills, bill credits or cheques) include mixed items which i track as inventory and cost of goods sold AND items such as consumables which I don't track and post to expense accounts. I think if I know:

(1) opening (from previous year return);

(2) closing stock values (stock asset value after any adjustments for personal use, losses or gains); and

(3) the Cost Of Goods Sold (QB account value) doing the reverse arithmetic would be easier and have to be more accurate.

All the same would you care to look at and maybe reply to my other recent posts in particular, this post in relation to BAS reports

http://quickbooksgroup.com/web...

- this doesn't seem to be a very active forum and except for this one, none of them have received replies.

thanks again

Hi Dav,

I am sorry that I cannot offer any suggestion to this issue as we don't have GST in Malaysia. This is one feature in QuickBooks that I have never used at all.

Best regards,
wpooi.