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3j
Established Member

Cost of goods sold issues in Profit and Loss Statement

I have a negative amount showing in cost of goods sold.  I checked my item list and the items are associated with an income account.  I don’t know how I fix this

6 Comments
QuickBooks Team

Re: Cost of goods sold issues in Profit and Loss Statement

Hello 3j,

 

Negative amount in Cost of Goods Sold can occur if you're using items for sales transactions without creating purchases.

 

I'd recommend creating bills for the negative inventory, non-inventory, and service items.

 

It's also best to reach out to your accountant to see if they have other ways of correcting the amounts.

 

Let us know if you need anything else.

Established Community Backer ***

Re: Cost of goods sold issues in Profit and Loss Statement


@JamesDuanT wrote:

Hello 3j,

 

Negative amount in Cost of Goods Sold can occur if you're using items for sales transactions without creating purchases.

 

No that is not correct

 

 

Established Community Backer ***

Re: Cost of goods sold issues in Profit and Loss Statement


@3j wrote:

I have a negative amount showing in cost of goods sold.  I checked my item list and the items are associated with an income account.  I don’t know how I fix this


On the P&L, double click on the COGS to drill down and get a transaction report

 

Any number in that transaction report that is a negative (or a credit) is the problem.  You can double click on the transaction to bring it up and see what you were trying to do.  With out seeing the data we can not figure it out.

Established Member

Re: Cost of goods sold issues in Profit and Loss Statement

This is helpful, I am selling merchandise and categorizing the items as cost of goods sold. They look like a positive charge when the invoices are pulled up. but my P&L is still negative for COGS

QuickBooks Team

Re: Cost of goods sold issues in Profit and Loss Statement

Hi @jennifermirandal,

 

@Rustler is correct. You'll need to review your report to learn what's causing the negative amount in your COGS. Let me provide a few more details.

 

The Cost of Goods Sold (COGS) is a reduction in your income. If it shows as a negative amount on the report, then this will show as an addition to your income. 

 

There are some transaction types wherein they'll show as a negative amount on your COGS. One example is when you enter a negative amount on your Refund Receipt.

 

Please leave a comment below if you have any other concerns. 

Established Community Backer ***

Re: Cost of goods sold issues in Profit and Loss Statement


@jennifermirandal wrote:

This is helpful, I am selling merchandise and categorizing the items as cost of goods sold. They look like a positive charge when the invoices are pulled up. but my P&L is still negative for COGS


Check your items

be sure the income account block actually has an income account selected

 

If you are using inventory items, Inventory  items have three accounts
expense = COGS
income = your sales income account
asset = inventory asset