Thanks for reaching out about your experience with the projects feature in QuickBooks Online (QBO). We appreciate you sharing the details of your current setup. I got some details about how the Cost of Goods Sold (COGS) correctly calculates and sometimes not.
To begin, COGS operates efficiently on expense-type transactions such as bills and expenses. If you directly add an item with COGS to an invoice without a preceding expense transaction, its value will not appear in project profitability reports.
For this feature to correctly show in project reports, the item should first be associated with an expense transaction (like a bill) and then linked to a sales transaction (like an invoice). For example: Record the expense (e.g., bill) first, then create the invoice. It allows the program to track and report the COGS properly.
Following this process ensures that QuickBooks can accurately match the cost of the item to its sale, which is crucial for correct COGS reporting in project profitability calculations.
Additionally, I'll add these articles to help you utilize the Project feature effectively in QBO:
Furthermore, you may consider reviewing this article If you want to learn more information on how to track your inventory in QuickBooks Online: Set up and track your inventory in QBO.
We've got your back, lantz1. Let us know in the comments if you have further concerns about inventory tracking in the program. We're always around to help. We wish you continued success.
