Why my cost of sales doesn’t appear in my profit & loss report however I’ve added all my products cost to the price of it in expenses section?!

Good day, ammarzietoon.

Cost of sales measures and accumulates a total of all costs for a product with inventory type. In this case, you'll have to ensure each product type of the item, so the cost of sales will show up on your report.

You can read our rundown and learn how tracking inventory impacts your reports: Impacts of inventory tracking on Balance Sheet and Profit & Loss reports.

To edit or change the type of the product:

1. Click on the Gear icon and choose Products and Services.
2. Locate the item and click on the Edit link.
3. Click on the Change type link in the Product/Service information panel select Inventory.
4. Set the necessary information of the product. 
5. Once you're done, click on Save and close.

See the Change Product and Service types article for further guidance.

In case you want to modify a product, refer to this link: Remove or merge a product or service.

You can always visit us and click on Reply if you have further questions. 

@ammarzietoon 

Just curious, which plan do you have? You need a Plus plan or Advanced plan to track inventory and show COGS when you create sales like Invoice or Sales Receipt.

Also, assuming you have got a Plus plan (or Advanced), you will need to run the P&L report on the accrual basis (not Cash Basis) to show COGS.

Hope this helps!

I’ve a plus plan and I do accrual method but the no. Is not correct. It should be multiplied with the quantity sold but it doesn’t.

Thank you for the additional information, @ammarzietoon.

QuickBooks will follow the FIFO (First In, First Out) entry of inventory. The report will calculate depending on the cost of the item when purchasing or recording it. This will not base on the rate or cost set up under the Products/Services.

An example is, you've set up an item with 50 as cost and when recording an expense, the cost entered is 60. The report will base on the amount entered on the expense transaction.

Check out these screenshots for your visual reference.

You can also read these articles for more information about inventory tracking in QuickBooks Online:

• What is FIFO and how is it used for inventory cost accounting?
• Can I track inventory manually?

Leave a comment below if you have any other questions. I'm a post away to help. Have a great day!

Thanks for helping me but I want you to know that the main problem for me is that the cost doesn't multiplied to the products have been sold.

Hello again, @ammarzietoon. Thanks for your prompt response. 

If you've mean that the amount doesn't calculate the quantity and rate, I'd recommend using a private browser. Since when creating transactions, QuickBooks Online automatically calculates the amount.

There are also times that your default browser is filled with data and temporary files from previously visited websites. Doing so helps isolate the issue. You can use the keyboard shortcuts below:

• Chrome: Ctrl+Shift+N
• Internet Explorer: Ctrl+Shift+P
• Firefox: Ctrl+Shift+
• Safari: Command+Shift+N

Once you've opened a private browser, try to create a test transaction and check if the amount is calculated properly. If it works, to ensure this doesn't happen again, it's a good idea to clear the cache of the browser you're using or trying other supported browsers. 

I'll appreciate if you can get back to me and share how it works. I want to ensure that this gets resolved. Happy Holidays. 

And I want you to know that I didn't make an expense account I just added the cost to the product/ services item.

Thanks for attaching a screenshot, ammarzietoon.

Do you have other COGS account created in your Chart of Accounts? If so, let's check if the product/service item in question is reported in that account. Here's how.

1. Go to Accounting, then Chart of Accounts.
2. Scroll down to your Cost of Goods Sold accounts and then Run a report for each of them.
3. Then look for the transaction and verify if the Amount is correct.

Once done, you can go back to your product and services screen to edit your item's COGS account. This process will correct the posting of your Profit and Loss report.

If you don't have other COGS accounts created, please try accessing your QBO using a private browser. This will help us identify if it's browser-related or not. Please follow the keyboard shortcuts provided by my colleague @MirriamM.

Once you're done, check your report again to see if it's calculating correctly now.

Disable the cache of your regular browser if it's working. The stored data can cause some odd errors and simply needs to be cleared from the browser.

If not, please contact our Customer Care Support so we can investigate further.

I've also added this article about inventory status reports for your additional resources.

Please know that I'm always here to assist you further so don't hesitate to reach out anytime. Enjoy the holiday seasons.

I tried it but I found that there are no amount in Cost of goods sold report and few invoices have been added to Cost of sales report. I think the main problem is that not all invoices added to the cost of sales report. So the P/L report doesn't calculated all cost of sales. And I tried to remove the cash and open private browser and nothing change. 

Thank you for the response and performing the troubleshooting steps that was provided, @ammarzietoon. 

Cost of Sales (COS) will only calculate if you used an inventory type of item. As mentioned by colleagues, if you added a quantity on hand when creating it, this will have a zero cost and will show a zero COS in your report.

Stay in touch if you still need help with your report. I'm always here to assist. 

You said "if you added a quantity on hand when creating it, this will have a zero cost and will show a zero COS in your report."
So what is the solution?!

It works for me thanks alot.

How do I manually change the cost of a product?  I do not want to change the "Starting Value", this will change the COGS for all invoices created.  The cost of a product varies and each sale needs to reflect the actual cost each time sold.  I am not using QB purchasing, Billing nor Expense for the inventory.  

Thanks for joining this thread, WBenhart.

I appreciate the detailed information about your concern. Let me point you in the right about your inventory concern.  

 
In QBO, there’s only one field for the cost. Since the cost of the product varies and each sale needs to reflect the actual cost, I suggest consulting with an account. They can recommend how to properly track the item without throwing off your records.

For more insights about the Inventory feature in QBO, check out the following articles.

• Set up and track your inventory in QuickBooks Online
• What is FIFO and how is it used for inventory cost accounting?

If you have any other QuickBooks concerns or questions, don’t hesitate to post a comment below. I’ll get back to answer them for you. Have a great day ahead.

i try this step but still no purchases expense appear in my profit and loss statement.

Hello grace74!

Thanks for joining us here. Let me explain more about the cost of sales.

The first thing we need to make sure of is that you added the items under the inventory type. COGS will only get affected once you have sold inventory items using invoices or sales receipts. Go to the Sales menu and select Product and Services to verify.

In addition, please note that QuickBooks Online uses the FIFO method. So if you entered $0 cost, the system will calculate it as $0 COGS unless the quantity for the first units purchased (First In) will be zero. That's the time QuickBooks Online will use the cost of the second units purchased.

If you need to, you can adjust the quantity and recreate the inventory item. Please check these articles for more details:

• Adjust inventory quantity on hand in QuickBooks Online

• Reorder inventory or supplies from vendors

Also, these two additional links will help you on how to properly track inventory items in QuickBooks Online:

• Set up and track your inventory in QuickBooks Online

• Add inventory products in QuickBooks Online

Need more help? Let me know by commenting on this thread. I'll be here!

why can't COGS show on P&L under Cash Basis?

I can clear things out for you why COGS is not showing under Cash Basis in Profit and Loss report, beth49.

The profit and loss report is the record of your income and expenses for the year and it indicates how the revenues transformed into the net profit. A cash basis is a transaction where you already receive the payment and record it as paid. While, for accrual basis, it's a transaction that is recorded as paid but you didn't receive the payment yet.

For tax purposes under the cash method, inventory is only recognized when it is paid for or sold. When you purchase and pay for your inventory, it is classified as an asset and listed on the balance sheet and it is not part of the cost of goods sold until it is used or sold. Also, QuickBooks will show the purchase cost of the product when running the report on a Cash basis. While the COGS from the invoice when sold will appear on the report when running it on an Accrual basis. To learn more about this one, see the Impacts of inventory tracking on balance sheet and profit & loss reports article.

You might want to check out these articles for more detailed information about the Profit and Loss report:

• Run a Profit and Loss report by bank account in QuickBooks Online
• Run a Profit and Loss Comparison Report

I'm just one post away if you need a hand with customizing reports or any QuickBooks-related. Feel free to leave a message in the comment section. I'm always around here in the Community to help. Keep safe, and have a good day.