Welcome to the Community, AccountR! Accounting for a brewery can have unique challenges, but we can definitely sort this out together.
Before we dive into a solution, I'd like to clarify a few details to ensure I fully understand your situation. Could you explain how you entered the cost per can so that it appears on your balance sheet? If possible, you can attach a screenshot in your reply. The more details you provide about how you account for these expenses, the better I can assist you with an accurate resolution.
In QuickBooks Online (QBO), additional entries aren't necessary if you use inventory items and map them to Cost of Goods Sold (COGS) and income accounts. QBO's inventory tracking allows you to record the cost of items upon purchase and then automatically move those costs to COGS when you sell the items. This ensures your financial reports accurately reflect your Balance Sheet and Profit & Loss (P&L) statement. Essentially, QBO manages COGS and inventory seamlessly, reducing inventory and adjusting COGS with each sales transaction.
Moreover, COGS is only affected when you make a sale, not when you enter a bill for purchasing inventory. When you enter a bill to record the purchase of ingredients, the accounts impacted are Accounts Payable and Inventory Asset. Since you've already entered invoices for the cost of producing cans, there's no need to re-enter the cost. Doing so would result in overstated expenses.
You may browse these articles for comprehensive information on COGS and inventory tracking in QBO:
To help you manage your brewery's sales and inventory moving forward, here's a guide on running reports: Use reports to see your sales and inventory status in QuickBooks Online.
I'm looking forward to hearing from you and helping you get everything on track. If you have any other questions or need more guidance on tracking inventory or managing your COGS, don't hesitate to reach out. With the right set up, we can ensure your books stay as smooth as your best batch. Keep safe!
