Entered inventory and then discovered that some items have wrong average cost. Trying to edit the item does not let me edit the average cost, even though it is wrong. How do I correct this error? It is causing my Inventory Valuation to be off.
The average cost of your inventory items is a calculated figure based on the purchase price of each item. For instance, if you purchased 10 widgets @ $5 and then 10 more widgets @ $2.50 you will have an average cost of $3.75 each. ($50 + $25 = $75/20 = $3.75) Therefore you cannot simply edit the item to change that figure. You must delete the purchase transactions (Write Checks or Enter Bills) or edit those transactions to reflect the actual prices you paid and let QB do the calculation again.
You should go back to that inventory adjustment and put a check mark in the box next to "Value Adjustment". You will then be able to adjust any items whose average costs are incorrect. You will want to input the actual cost of that item multiplied by pieces on hand per your inventory numbers.
