I just started using QBOnline with Etsy.I buy materials and put them in the COGS but QB is not showing my COGS as a deduction on taxes?How do I achieve this?

Hello, Robert.

QuickBooks should recognize your sales from Etsy, so COGS materials show up as a deduction on your taxes. I'll elaborate on this further below.

You may haven't connected Etsy to your QuickBooks Online (QBO) account. That's why no sale is recognized. The app records sales tax that’s collected and remitted for an Etsy order as a line item on the sales receipt or refund receipt.

With that said, you'll have to record (manually) all your Etsy sales so QuickBooks recognize and calculates your sales taxes accurately. Please see this article for the complete details about this: Import transactions from your Etsy shop into QuickBooks Online.

Additionally, you can use reports to get helpful insights into the things you buy and sell and the status of your inventory. If you wish to see which ones to run depending on what kind of info you want, you can refer to this article: Use reports to see your sales and inventory status.

I'm all ears if you need further assistance with your COGS account and managing ETSY transactions in QBO. Feel free to add your reply below, and I'll circle back to help you.