Accounting Journal Entries issue (Cost Prices)

Question

Hi
someone in my company changed the Cost field for some products that had stock quantity assigned to it , its been 2 weeks now and most of the products have stock moves after that cost field update
I know I can revert the cost field back to the previous one (which will create a reverse entry of the Previously created Journal entry: Stock in Hand & A/P Accrual Inventory )

But what about the Stock that has been sold in the meantime, what will be the consequences on those already sold items when

Sindy · Answer

Update: thanks so much for your reply. Just one follow up question:
Do I understand correctly that the new '
Revaluating Stock Cost' account should be a 3000 Inventory account type?  and I think logically, the
Cost of Good Sold account
should be a 7000 account type? Thanks!

Abdul Aziz · Answer

Yes I Did
firstly Create a new account with Type Expenses (for example account name: Revaluating Stock Cost)
Then
1. Change the Cost back to normal (back to the old cost )
2. Check the Product moves (from Date the cost was changed onwards) only for the stock going out of the warehouse
3. Subtract new cost(current) from old cost(actual) and the difference should be multiplied with the
amount sold during this time (line 2)
4. Create a journal entry for Revaluating Stock Cost
4a. If the value from

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