Thanks for joining the thread, @amooreCRS.
QuickBooks calculates the average cost by adding the cost of all of the items in inventory divided by the number of products or services.
The system is programmed to calculate using this method.
If your expected average cost calculation is incorrect, you can run the Inventory Valuation Summary report. This way, you can verify many times the items were purchased and change their average value. Here's how:
- Go to Reports and click Inventory.
- Select Inventory Valuation Summary, then set the dates to All.
- Double-click the item in question.
After getting the data, you can now manually calculate the average cost and compare it to QuickBooks. You can also ask your accountants for further guidance when it comes to calculation. This way, we can ensure that they are accurate.
If QuickBooks shows an incorrect amount, let's run some basic troubleshooting steps to address the issue. There might be a minor data damage in your company file that's causing this behavior.
To start, update QuickBooks Desktop to the latest release. This way, you can refresh the program and have the latest features and fixes.
Here's how:
- Go to the Help menu and select Update QuickBooks Desktop.
- Click the Update Now tab.
- Select Get Updates to start the download.
- When the download finishes, restart QuickBooks.
- Once prompted, accept the option to install the new release.
If you're still getting the same result, run the Verify and Rebuild Data tools. This will help us identify the most common data issues within a company file and fix it.
I'll also add our Year-End Guide for QuickBooks Desktop. This will provide you with some info on what you'll need to do when closing your books and preparing for the new one.
Let me know how else I can help you with QuickBooks by adding a comment below. I'm more than happy to lend a helping hand. Keep safe!
