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I have 6 invoices showing in cost of goods sold not sure how they got there nor how to remove.

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Best answer 12-12-2019

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QuickBooks Team

I have 6 invoices showing in cost of goods sold not sure how they got there nor how to remove.

Hello Brnstrmr,

 

Welcome to the QuickBooks Online community! I'll gladly go over the Cost of Goods Sold account, how transactions end up there, and what settings you should look at. I want to make sure you have a grasp on what's happening in your account so you can continue to manager your books as needed.

 

The Cost of Goods Sold (COGS) account is just as it sounds: an account that's affected by the items you sell to your customers. Whenever you create a transaction with a product you're selling that's mapped to the COGS account, you'll see them in the account register. This is because when you sell an item, the program needs to account not only for the sale, but the cost that item had to you, which is how it calculates any profit.

 

When I mention "mapping," I mean the accounts chosen when setting up a product in your QuickBooks. Upon setting up a new inventory item, there's a section for Purchasing information, which is where you would enter the cost you pay for the item, as well as the expense account you want the cost to track to. This is, by default, the COGS account, but you can change it. Here's a screenshot of what that part of the setup looks like.

 

 

If you don't want items tracking to the COGS account, hover over Sales, choose Products and Services and then Edit the items you'd like to change. This will allow you to "remove" those transactions from the COGS account by moving them to another one. You'll note, however, that your options are limited to COGS-type accounts because of how the program needs to calculate your profits and losses.

 

The COGS account can also be used on a journal entry, but since you're saying you're seeing invoices specifically, it's likely linked to the items themselves as I highlighted above.

 

I hope that helps sort this out a bit. I've got a few articles for your review that give a more in-depth look at how each of these things work and work together.

Give me a shout if you have more questions. :)

View solution in original post

3 Comments
QuickBooks Team

I have 6 invoices showing in cost of goods sold not sure how they got there nor how to remove.

Hello Brnstrmr,

 

Welcome to the QuickBooks Online community! I'll gladly go over the Cost of Goods Sold account, how transactions end up there, and what settings you should look at. I want to make sure you have a grasp on what's happening in your account so you can continue to manager your books as needed.

 

The Cost of Goods Sold (COGS) account is just as it sounds: an account that's affected by the items you sell to your customers. Whenever you create a transaction with a product you're selling that's mapped to the COGS account, you'll see them in the account register. This is because when you sell an item, the program needs to account not only for the sale, but the cost that item had to you, which is how it calculates any profit.

 

When I mention "mapping," I mean the accounts chosen when setting up a product in your QuickBooks. Upon setting up a new inventory item, there's a section for Purchasing information, which is where you would enter the cost you pay for the item, as well as the expense account you want the cost to track to. This is, by default, the COGS account, but you can change it. Here's a screenshot of what that part of the setup looks like.

 

 

If you don't want items tracking to the COGS account, hover over Sales, choose Products and Services and then Edit the items you'd like to change. This will allow you to "remove" those transactions from the COGS account by moving them to another one. You'll note, however, that your options are limited to COGS-type accounts because of how the program needs to calculate your profits and losses.

 

The COGS account can also be used on a journal entry, but since you're saying you're seeing invoices specifically, it's likely linked to the items themselves as I highlighted above.

 

I hope that helps sort this out a bit. I've got a few articles for your review that give a more in-depth look at how each of these things work and work together.

Give me a shout if you have more questions. :)

View solution in original post

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Level 1

I have 6 invoices showing in cost of goods sold not sure how they got there nor how to remove.

That is exactly what it was. I had some items marked as inventory items which technically they were, so I changed to non inventory items. Since I haven't figured out how to track inventory items anyway and apparently the info goes astray. Much appreciated!

Highlighted
QuickBooks Team

I have 6 invoices showing in cost of goods sold not sure how they got there nor how to remove.

You're welcome! I'm happy to have been able to help you figure this out. If you haven't, take a peek at the article I shared in my original response about tracking inventory. That should get you on your way. Stop by again if you need anything else.