I have a drop ship ecommerce business and purchase the same items from multiple vendors. Is there a report in QBO that I can print the average COGS by item?

Hello there, Briana.

In QuickBooks, the weighted average cost method is utilized to determine the inventory value and the cost of goods sold (COGS) during sales transactions. This average cost is computed by summing the costs of all items in inventory and dividing by the total number of items. For a detailed explanation of how this average cost is derived, you can refer to the resource: Understand inventory assets and cost of goods sold tracking.

I'll guide you through the process of generating a report in QuickBooks Online (QBO) to calculate COGS per period, compare each period, and print the average COGS by item:

1. Click on the Gear icon, then select Chart of Accounts.
2. Enter Cost of Goods Sold in the Search field.
3. Click on Run report in the Action column.
4. Set the report periods and compare them per period.
5. Use the Export/Print option to export the report to Excel.
6. In your Excel worksheet, calculate the average COGS.

For additional resources on comprehending and overseeing inventory and cost of goods sold, you can explore the following articles:

• Understand inventory assets and cost of goods sold tracking
• Cost of goods sold: How to calculate and record COGS | QuickBooks Canada Blog

If you require further assistance regarding cost of goods sold, feel free to reach out in the comments section. Have a great day!