Does Quickbooks Online Essentials Allow "Cost of Goods Sold" Account Type in the Chart of Accounts?

jaradc · ‎August 16, 2021

I'm thinking about downgrading from Quickbooks Online Plus to Quickbooks Online Essentials. I've discovered that Quickbooks Online Plus's "Products and Services" section does not meet my Ecommerce business needs.

My question: If I downgrade, will I still be able to have a "Cost of Goods Sold" Type of account in the Chart of Accounts?

I see that the Downgrade functionality shows "Costs of Goods Sold" for only the Plus plan, but I was wondering if I could just make an account in the Chart of Accounts named "Cost of Goods Sold" and have it be Type "Cost of Goods Sold"... or is it that Essentials doesn't have the "Cost of Goods Sold" type?

Giovann_G · ‎August 16, 2021

I can share details about downgrading your QuickBooks Online subscription, jaradc.

Yes, you can still create a Cost of Good Sold account type even if you're downgrading your plan to essential. Before doing so, please ensure to turn off some features in the Settings.

Here's the list of features that you may need to turn off:

Pause recurring transaction templates.
Remove extra users.
Turn off inventory.
Cancel third-party apps.

Check out this article for more detailed information: Upgrade or downgrade your QuickBooks Online subscription.

Then, you can create an account to track the cost of goods sold. I'll show you how.

Go to the Gear icon.
Select Chart of Accounts.
Click New.
Choose Cost of Goods Sold from the Account Type dropdown.
Select the closest type of Cost of Goods Sold that matches your preference from the Detail Type dropdown.
Hit Save and close.

Let me share this helpful material to learn how to manually track your inventory in QuickBooks Online Essential: Can I track inventory manually in QuickBooks Online?

In addition, you can check out this resource to learn more on how the COGS is calculated for more insights: Cost of goods sold: How to calculate and record COGS.

I'm always here if you have further questions about managing your QuickBooks account. Keep safe and have a good one.

View solution in original post

Giovann_G · ‎August 16, 2021

I can share details about downgrading your QuickBooks Online subscription, jaradc.

Yes, you can still create a Cost of Good Sold account type even if you're downgrading your plan to essential. Before doing so, please ensure to turn off some features in the Settings.

Here's the list of features that you may need to turn off:

Pause recurring transaction templates.
Remove extra users.
Turn off inventory.
Cancel third-party apps.

Check out this article for more detailed information: Upgrade or downgrade your QuickBooks Online subscription.

Then, you can create an account to track the cost of goods sold. I'll show you how.

Go to the Gear icon.
Select Chart of Accounts.
Click New.
Choose Cost of Goods Sold from the Account Type dropdown.
Select the closest type of Cost of Goods Sold that matches your preference from the Detail Type dropdown.
Hit Save and close.

Let me share this helpful material to learn how to manually track your inventory in QuickBooks Online Essential: Can I track inventory manually in QuickBooks Online?

In addition, you can check out this resource to learn more on how the COGS is calculated for more insights: Cost of goods sold: How to calculate and record COGS.

I'm always here if you have further questions about managing your QuickBooks account. Keep safe and have a good one.

jaradc · ‎August 17, 2021

Thanks so much for the clarification.

I did have one follow-up about the downgrading when the "50% off for 3 months" plan is currently active.

You'll notice from my screenshot above that I am currently under a promotion named "50% off for 3 months" on the Plus plan. If I downgrade, it looks like that promotion will go away. Is that true? If so, should I just close this account and start over with Essentials if I'm fine rebuilding everything (I'm a new Quickbooks Online user).

MJoy_D · ‎August 17, 2021

I can share some information about downgrading your current subscription, @jaradc.

Yes, I’ve seen the screenshot that you’re referring to, and downgrading indeed removes any discounts on your current plan. You may consider starting over a new account to get 50% off for 3 months. Then, set this up or use the same ID and password you already use for your existing QBO account.

Follow the steps below:

Go to this link: Plans & Pricing.
Make sure to toggle the option for Buy now for 50% off for 3 months and click on the Select button under Essentials.
Follow the prompts to finish setting up your account.
When you reach the Create an Intuit account page, scroll down and click the Sign in button beside the Adding a company to an existing account?.
Enter the email address you use with your existing QBO account.
Click on the Get started button to start using the account.

You can refer to the following articles for more information about downgrading your current subscription and adding or creating a new account or company in QBO:

After creating this new account, here are some video tutorials that can help you get started with QuickBooks Online: Video tutorials for QuickBooks Online.

Let me know if you have questions about downgrading your current subscription and or anything else, by leaving a reply below. I'm always here to answer them for you. Keep safe!

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Does Quickbooks Online Essentials Allow "Cost of Goods Sold" Account Type in the Chart of Accounts?