topic COGS Correction in Get your taxes done using TurboTax

COGS Correction

MM116 — Mon, 14 Feb 2022 13:06:13 GMT

I'm sorry if this question was already asked before, but I can't seem to find a solution here.

When importing my QB file to Turbo Tax Business, entering the beginning of the year Inventory valuation, adding COGS and Inventory ending, there's is a gap that Turbo Tax adds as COGS.

How do I correct that back in my books so it also reflects in an expense account to match up my income? and why is this happening?

Any advice would be greatly appreciated!

Re: COGS Correction

JamesG1 — Mon, 14 Feb 2022 13:58:14 GMT

Cost of goods sold or cost of sales is an expense category reported in self-employment activities that report an Inventory value as an asset on the activity balance sheet. Cost of sales is computed as follows:

Beginning inventory +
Purchases -
Ending inventory =
Cost of sales

I have an old version of QuickBooks desktop which has Cost of Sales in the standing account structure where it can quickly be activated.

Re: COGS Correction

MM116 — Mon, 14 Feb 2022 17:02:02 GMT

My question is why do they not match up when every item I sold has proper cost attached to them.

Additionally, how can I adjust COGS without effecting asset value?

Re: COGS Correction

DaveF1006 — Tue, 15 Feb 2022 04:03:22 GMT

This would be a question to ask Quick Books customer support and see how you can report the specific identification method rather than using FIFO or LIFO in evaluating inventory. You may be able to adjust COGS by evaluating the amount of your ending inventory using the specific identification method but check with QB first to see if there is a much easier way. Please view this informative article regarding the specific identification method. QB customer support is at 800-446-8848.