Cost of goods sold NO INVENTORY

Hello @Hey May,

I appreciate your detailed response about the task you want to achieve in QuickBooks Online. I'm here to assist you with your concern about the Cost of Goods Sold (COGS).

I can see that you don't use inventory because of the custom purchases for your clients. For the workflow, you create an estimate and convert it to an invoice later.

If you bill your clients for the costs, you'll need to mark the line items as billable to the customer. The only way to do this in QBO is to include products or services.

Since you don't need to track the inventory details, I recommend you use the Non-Inventory or Service type. During the process, you'll have the option to add an income for sales and expenses for the purchases.

Here's how:

1. Click the Gear icon in the upper-right corner.
2. Select Products and Services under Lists.
3. Click New.
4. Select Non-inventory or Service.
5. Enter the necessary information.
6. Hit Save and close.

After a client accepts your estimate, you can convert that estimate directly into an invoice. Check out this link for the detailed steps: Convert an estimate into an invoice in QuickBooks Online.

Also, you can easily record and track billable expenses so your client can reimburse them through the invoice. To learn more about it, please visit this article: Enter billable expenses.

Keep in touch with me if you have additional questions or clarifications about using QBO. I'll be more than happy to help you some more.