1 Topic by chrison (edited by chrison 01/20/2013 12:35:06 am)

  • From: Canada, BC, Lantzville
  • Registered: 01/07/2013
  • Posts: 135

Topic: Wrong COGS

I purchase two items as follows:

Item "A" - Purchased for $6.25 each
Item "B" - Purchased for $3.62 each

Recently I sold 2 pieces of Item "A" and 1 piece of Item "B" as follows:

Item "A" - Sold 2 @ $9.40
Item "B" - Sold 1 @ $5.50

I was expecting my COGS to be as follows:

Item "A" - 2 units @ 6.25 = $12.50
Item "B" - 1 unit @ 3.62 = $3.62
Total COGS = $16.12

However, I noticed that only $1.81 was credited to Inventory and debited to COGS.  Interestingly, this is exactly 1/2 the purchase price of Item "B".

How is FA calculating COGS?  And, how do I go about reversing the erroneous transaction and posting the correct transaction?

Thanks!

Regards,

Chris

chrison's Website

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,107

Re: Wrong COGS

This is strange. I cannot reproduce this. If you look at the Standard Cost for the items in Items and Inventory you should see the correct values.

Did you do some item adjustments with zero price? Or something else that influenced the Cost Price?

/Joe

  • From: Canada, BC, Lantzville
  • Registered: 01/07/2013
  • Posts: 135

Re: Wrong COGS

joe wrote:

This is strange. I cannot reproduce this. If you look at the Standard Cost for the items in Items and Inventory you should see the correct values.

Actually, I went into Standard Cost in Items and Inventory, and it shows $1.81 for Item "B" and $0.00 for Item "A" which is exactly what was used to move the value of the items from Inventory to COGS when I made the sale.  So I went ahead and correct the amounts.

The question is, how the heck did those costs get there???  I did a random check of the Standard Cost for various other items and they are all correct...  they're the purchase cost when I bought the items from suppliers.

That's really weird!  Is there a report/query I can run that will show all of the standard costs for all items so I can easily check everything?

joe wrote:

Did you do some item adjustments with zero price? Or something else that influenced the Cost Price?
/Joe

Not that I remember.  I did void a sales invoice for the sale of the two items because the account coding was all messed up, but that appeared to process correctly.  Maybe that caused the problem?

Anyway, I'll keep an eye on things and let you know if I find any more such quirks.

Thanks for your help!

Regards,

Chris

chrison's Website