How do you calculate beginning and ending inventory?

Paul Bryant06 Jul, 2022Finance

Many businesses need to purchase products from vendors and enter them into their inventory. This can be accomplished through purchase orders. QuickBooks Online gives you the ability to manage purchase orders so that you can pay your vendors and update your inventory. The basic formula for calculating ending inventory is: Beginning inventory + net purchases ? COGS = ending inventory. Your beginning inventory is the last period's ending inventory. The net purchases are the items you've bought and added to your inventory count.