If you're noticing that QuickBooks Online is slow when creating or editing sales receipts with inventory items, the issue is often related to how the platform calculates Cost of Goods Sold (COGS) using the FIFO (First-In, First-Out) method.
FIFO in QuickBooks Online vs. Desktop
QuickBooks Online exclusively uses the FIFO method to calculate COGS. This means when you create or modify a sales receipt that includes inventory items, QuickBooks must recalculate the cost of every related transaction that occurred after the date of the receipt. This recalculation process can be time-consuming, especially if:
- The sales receipt contains many inventory items.
- The receipt is backdated relative to other sales transactions.
In contrast, QuickBooks Desktop gives you the option to choose between FIFO and average cost, which can be more efficient in some workflows.
Best Practices to Prevent Delays
To improve performance and avoid long processing times:
- Keep your books up to date. Enter sales receipts in chronological order to minimize recalculations.
- Avoid backdating sales transactions whenever possible.
- Ensure inventory quantities are not negative. Negative quantities can confuse the COGS calculation engine, resulting in delays or errors.
- Record all purchase transactions as soon as inventory is received to maintain accurate stock levels.
If you're using QuickBooks Desktop and frequently experience delays, you may consider switching to the average cost method — though it’s important to evaluate whether it aligns with your accounting practices.