Inventory Mistake, Correct Cost of Goods Sold Report

[Velo]

Hello!
If an item is added to the inventory with a cost twice by mistake and then recounted, the Cost of Good Sold report will not be correct, and that extra expanse will be wrongfully added to a tax report.

Example: I create an Order for an Item that costs 10$ and mark it as received. I then wrongfully create that Order again. I now have 2 of that Item in stock.

When counting stocks, I of course find that I have one too many. If I recount that Item in the stock, it'll go down by 1, creating a cost of a sold good of 10$. That 10$ breaks the Cost of Goods Sold report, and eventually a tax report.

It's impossible to correct this in the inventory. Square won't let you (probably for good reasons), add a negative count of items either in the stock or in an Order.

I tried many solutions, and my conclusion is that if you made a mistake and added too many of an item with a cost, whatever the reason, you are screwed and that cannot be straightened in a way that will keep the Cost of Goods Sold report correct.

Is there any way to do such a correction (even creative ones)?

In general, according to me, the fact that human errors can't be dealt with in a manner that keeps the numbers straight is an issue.

Thanks for any help!

[Velo]

Other thoughts:
Keeping track externally of the incorrect costs of goods sold either in an accounting software or in a spreadsheet is always feasible, but that increases again the risks of tax reports errors, and leave the Cost of Goods Sold report incorrect.

[Candlestore]

@Velo ;

So you Received some Widgets A on Monday that Cost $10, then again Said I received Widgets A on Tuesday that cost $10?

You received say 15 Widgets each day 15 on Monday and 15 Tuesday - 30 Total in Inventory now.

So if you need to re adjust your total inventory to only 15 units of widgets you can.

Go into your Square Dashboard - Items - then search for Widget A for example.

Open Widget A, Scroll down to you see TRACKING make sure it is on and there should be a Quantity for Widgets of 30 in this example.  Click on the Blue 30 on Hand, this brings you to the Manage Stock Screen.

Again scroll down this time Look for Tracking - Stock Action  Select reason and you should get a pop up that gives you these choices:

Stock Received - This adds to the Quantity on hand

Stock Recount - This changes quantity to whatever you enter

Damage -  Subtract from Inventory on Hand

Theft -  Subtract from Inventory on Hand

Loss -  Subtract from Inventory on Hand

Restock Returns - adds to the quantity you have on hand

So to adjust your count back to 15 from 30, for my example of Widgets you would select Recount and enter 15.  This should get your reports back on track.  

[Velo]

Hello Keith,
When an item with a cost is recounted to a lower number, the cost of goods sold goes up.

In the event of a human error (adding too many of an item that has an associated cost), there is no way to correct the number of items to a lower number than what is in stock with affecting the cost of goods sold.  This is where the blocker is.