Resolve discrepancies with the Cost of Goods Sold in QuickBooks Desktop to reflect sales made in QuickBooks Desktop Point of Sale.

Reasons why your Cost of Goods Sold (COGS) in QuickBooks Desktop doesn't match in Point of Sale:

  • Items that were entered or received have an incorrect cost.
  • Items initially don't have a cost and was only entered after a sale was made.
  • Point of Sale isn't mapping to the correct QuickBooks Desktop COGS account.
  • There are adjustments made to the QuickBooks Desktop COGS account that will not reflect in Point of Sale.
  • The transactions sent to QuickBooks Desktop from Point of Sale have been deleted.
  • The receipt was marked as sent to QuickBooks Desktop before the financial exchange could actually send it.
  • You have purchased and received inventory in bulk and then sold them as individual items.

Solution 1: Make sure that item costs were entered correctly at the time of sale

The best way to see whether items have a zero cost is to run an Item Summary report

  1. Select Reports > Sales > Item Summary .
  2. Make sure you've cleared all the filters and customization by selecting Modify and then Revert.
  3. Select the Item Name column header to sort and group by Item.
  4. Look in the Ext Cost column for 0.00 dollar amounts. Also, inspect other item costs to make sure they are what you'd expect.
    Note: If there are no items with 0.00 dollar amounts, try Solution 2.
To fix it:
  1. Make note of the name of the item or items that have 0.00 ext cost.
  2. Select Inventory, then select Item List.
  3. Bring up each item one at a time, then select Edit.
  4. Look at the History report to determine how many items were sold without a cost.
  5. Multiply the quantity sold by what the individual item cost should have been.
  6. Go to QuickBooks Desktop and Record a journal entry that debits Inventory asset and credits Cost of Goods Sold for this amount.
    Note: To prevent this issue in the future, be sure you are receiving items on a voucher and not manually entering quantities as you add new items.
What if I still have an On-hand QTY for these items?
  1. Edit the item and enter the correct item cost in the Avg. Unit Cost field.
  2. Select Save. An adjustment will be sent to QuickBooks Desktop next financial exchange that increases your inventory asset. The next time you sell this item, it will now have a cost.

Solution 2: Check that preferences and items are connected to the right COGS account

Check your Point of Sale preferences

  1. Select File > Preferences > Company.
  2. Under Financial, select Accounts.
  3. Make sure the Cost of Goods Sold account is correct for each Item type listed.

Check each item's preference

  1. Select Inventory, then select Item list.
  2. Right-click any column header and select Customize Columns. Make sure COGS Account is selected.
  3. Select the COGS Account column header to sort by COGS account. Make sure there are no expected accounts listed for each item.
To fix it
  1. Select the COGS account name in the item list and select the correct account.
  2. In QuickBooks Desktop, use a General Journal entry to transfer the amount from the wrong account into the right one.

Solution 3: Look for manual adjustments from Point of Sale

Check for Point of Sale adjustments
  1. Select Inventory > Quantity Adjustment History.
  2. Right-click any column header and select Customize Columns.
  3. Add Diff Cost to the Chosen Columns list, then select Save.
    • Make note of any quantity adjustments made in error and unexpected amounts in the Diff Cost column.
    • To see where these funds were moved to in QuickBooks Desktop, double-click an entry and then select I want to > View Financial History. Select Open in QuickBooks.
  4. Select Inventory, then select Cost Adjustment History.
  5. Repeat Steps 1-3 to inspect Cost Adjustments.
To fix it
  • You can easily reverse any Point of Sale adjustments made in error by choosing I want to > Reverse Memo from Qty adjustment or Cost adjustment history.
  • In QuickBooks Desktop, you can always create a general journal entry to transfer the amount from an incorrect account to the correct one.

Solution 4: Make sure Point of Sale transactions weren't deleted in QuickBooks Desktop or marked as already sent

If you suspect receipts have been deleted or marked as sent, and you are sending detailed transactions to QuickBooks Desktop, look at each receipt's Financial History. From Sales History, select I want to, then select Show Financial Detail.

  • If it's marked Sent to QuickBooks Successfully, but there are no Open in QuickBooks buttons, this receipt and it's recording entries may have been deleted in QuickBooks Desktop. Consider selecting Resend this document during the next Financial Exchange if you can't find it in QuickBooks Desktop.
  • If it's marked Not sent, look to see if Mark this document as successfully sent is selected. If this receipt is supposed to affect your COGS account, select to clear the Mark as sent checkbox, then select OK.

Solution 5: If you receive items in bulk, make sure you are receiving and selling at the correct quantities

There may be times where a bulk item, such as gravel, is received as one type of quantity (for instance, a ton), and then sold as a different quantity (a square yard). If this is occurs, it has serious ramifications for your COGS account.

  1. Select Inventory, then select Item to inspect items that may fall under this category.
  2. Select Show Details to see the History for each. Make sure Receiving Vouchers and Sales Receipts show reasonable quantities and prices.
To fix it

If you're in this scenario, a simple general journal entry in QuickBooks Desktop can correct the issue. To fix without a journal entry, you will have to reverse and re-enter each receipt where the quantity was entered incorrectly.