Reclassify expense account to COGS account in Quickbooks Desktop

Hello, sheila552.

I want to make sure that you'll be able to reclassify your accounts accordingly. I'd be glad to discuss this in detail and guide you in getting things done.

You may use Cost of Goods Sold (COGS) to account for how much it cost to produce your products and services. This includes direct materials and direct labor expenses to produce a good that is sold. 

 Know that changing the type or detail type of an account may affect your accounting and reporting.

1. Go to the Lists menu.
2. Click Chart of Accounts.
3. Locate the account you want to change and select Edit Account.
4. Change the Name and Detail Type to match the info of the account you want to keep.
5. Then click Save and Close.

If you have an accountant, It would be better to get in touch with them for guidance.

I've got you an article for more information about common chart of accounts tasks: Understand the chart of accounts.

Please let me know how everything goes in the comments. I'm always here should you need anything else. Take care.

This is a generic response and I have seen it many times while researching my issue.  Plus I have Quickbook Desktop not Quickbooks Online.  So this really doesn't help me at all.  I need first to know the best steps to take to do this in Quickbooks Deskstop and what impact it could have on my accounting and reporting.  I mean would it mess things up or just put in a different category.

Hi, sheila552.

I will have my colleague update her answer so you can follow the steps to reclassify your expense account in QuickBooks Desktop.

In the meantime, you can read through the following article to know more about how to edit and set up account numbers for your chart of accounts: Add, edit, or delete accounts in QuickBooks Desktop. On the same link, you'll find steps on how to add a sub-account.

Please know that the QuickBooks Community is always here to help if you have any other concerns. Have a good one!