Inventory Control: Large package of items to individual items. How to transfer without impacting cos

[AVMercantile]

We sell certain packages of items like a 5lb bag of onions or a carton of cigarettes in both cartons and individually.  Same product, but different barcodes and prices. We buy them in the large package and then break them out when needed to sell individually.  The price individually is not necessarily related to the larger package.  We use Square for Retail and the issue is how to move the inventory from the larger item to the individual item without impacting COGS.  I dont see an option to lower the inventory without hitting the COGS.  My options are Stock Received, Inventory Re-Count, Damage, Theft, Loss, Restock-return.   None of these options appear I can lower the inventory of the cartons and not hit the COGS.  We have tried using Inventory Re-Count and it makes it look like we are losing money on the cartons when we are not.  Anyone have an answer? 

[AVMercantile]

Has this question been answered?  I have the same issue and when using inventory re-count it shows up in my COGS  for the cartons with no corresponding sale and thus it appears the cartons are losing money.  I dont see an option to lower the inventory without hitting the COGS. Anyone have an answer?  My options are Re-count, Stock Received, Inventory Re-Count, Damage, Theft, Loss, Restock-return.   

[isabelle]

Hey @AVMercantile-

Stock adjustments that deduct from your inventory levels will credit or debit your Cost of Goods Sold and Inventory Value (depending on the type of adjustment) based on a first in, first out (FIFO) accounting method. If the cost appears to be inaccurate, you can edit the cost of the original stock intake. For this reason, you are unable to update the unit costs for stock adjustments that deduct from your inventory levels, such as re-counts that adjust down, loss, damage, or theft stock adjustments.

To give you an example:

Let’s say you accepted a purchase order or manually received 10 items at a cost of $15 each. Later, you manually re-counted to reduce the item’s stock to 8 items. The re-count adjustment will debit your Cost of Goods Sold by $30. The adjustment down will reflect in your History, but to update the unit cost (say to $10), you’ll need to locate the original receive adjustment. After you update the original intake adjustment, the re-count adjustment will automatically reflect the new unit cost and your inventory reports will be updated.

Note: These features aren’t available with Square for Retail Free.

If you have any questions about this, I would suggest giving our Square for Retail team a call. Thanks for resurfacing this.