QuoteWerks Responds to Customer Concerns About Tariff Impact on Inventory with New QuickBooks Desktop Feature
At QuoteWerks, we're committed to listening to our customers and responding to their evolving needs. A recent discussion at ChannelPro LIVE: Chicago highlighted a growing concern among QuickBooks Desktop users: the impact of tariffs and fluctuating costs on inventory valuation.
Many businesses, particularly larger organizations, continue to rely on QuickBooks Desktop for its robust enterprise-level functionality, which isn't yet fully replicated in QuickBooks Online. These users are increasingly facing challenges in accurately representing their inventory costs due to tariffs and other market fluctuations.
During ChannelPro LIVE: Chicago, Brian Laufer of QuoteWerks heard directly from customers about these challenges. This valuable feedback led to the development of a new feature designed to provide a more stable and accurate representation of inventory value for QuickBooks Desktop users.
Introducing "Average Cost" Option for QuickBooks Desktop Inventory
We’re excited to announce that, as of QuoteWerks v25 Build 2.09, there is a new setup option specifically for QuickBooks Desktop users: "Use 'Average Cost' instead of 'Purchase Cost' when retrieving Inventory Items." This feature is currently available to all users on this version and above.
How Does the "Average Cost" Feature Work?
This new setting offers a significant advantage in managing inventory costs when purchase prices are subject to frequent changes. Here’s how it works:
- Average Cost: Selecting this option provides a smoothed representation of inventory value and Cost of Goods Sold (COGS). This is particularly beneficial when purchase prices fluctuate due to tariffs, supply chain disruptions, or other market factors. By averaging the cost over time, you can reduce the impact of short-term price volatility on your financial reporting.
- Purchase Cost: The existing "Purchase Cost" option assumes that costs remain relatively constant. While suitable for businesses with stable pricing, it can lead to distortions in inventory valuation when prices fluctuate significantly.
Important Note: This new setting only affects how the cost is retrieved for Inventory Items in QuickBooks Desktop. It does not change the cost calculation for other QuickBooks item types, ensuring consistency across your accounting data.
Why This Feature Matters
This new feature empowers QuoteWerks users to:
- Improve Accuracy: Gain a more accurate representation of inventory value and COGS, especially in volatile markets.
- Reduce Volatility: Smooth out the impact of fluctuating purchase prices on financial reporting.
- Make Informed Decisions: Base business decisions on a more stable and reliable view of inventory costs.
Frequently Asked Questions
How do tariffs affect inventory costs in QuickBooks Desktop?
Tariffs can cause frequent changes in purchase prices, making it difficult to maintain accurate inventory valuations using standard methods. These fluctuations can significantly impact your cost of goods sold (COGS) and overall inventory value calculations in QuickBooks Desktop.
What is the difference between average cost and purchase cost?
Average cost smooths out price fluctuations by averaging costs over time, providing more stable inventory valuations. Purchase cost uses the most recent price, which can lead to volatility in your reports when prices frequently change due to market conditions or tariffs.
How do I enable the average cost feature in QuoteWerks?
Update to QuoteWerks v25 Build 2.09 or later, then select the "Average Cost" option in your QuickBooks Desktop integration settings. This can be done through the QuoteWerks configuration menu.
Conclusion
We believe this enhancement will be a valuable tool for QuickBooks Desktop users navigating today’s complex economic landscape. We are committed to continuously improving QuoteWerks based on your feedback. Thank you for being a part of the QuoteWerks community!
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